The annual data that follows pertain to Goggles 4 Upper U , a manufacturer of swimming goggles (the company had no beginning inventory):
Sales price ... $45
Variable manufacturing expense per unit ... $20
Sales commission expense per ... $7
Fixed manufacturing overhead ... $19,80,000
Fixed operating expenses ... $250,000
Number of goggles produced ... 220,000
Number of goggles sold ... 198,000
Requirements
1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Flannery Water Optics for the year.
2. Which statement shows the higher operating income? Why?
3. The company marketing vice president believes a new sales promotion that costs $165,000 would increase sales to 240,000 goggles. Should the company go ahead with the promotion? Give your reason.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The annual data that follows pertain to Goggles 4 Upper U , a manufacturer of swimming goggles (the company had no beginning inventory): ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
How motivation, stress and time Management can influence workplace dynamics
Answers (1)
Cowpoke Partners is the investment adviser to the Western Vistas family of funds, the firm's sole advisory client. The Western Vistas family currently has $18 million under management.
Answers (1)
Solomon Company reports the following in its most recent year of operations: Sales, $1,000,000 (all on account) Cost of goods sold, $490,000 Gross profit, $510,000 Accounts receivable, beginning of year, $110,000 Accounts receivable, end of year,
Answers (1)
When decision makers carefully and conscientiously execute all six stages of decision making, the decision makers are said to have exercised?
Answers (1)
Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of 5,300 anchors, Sea Side Enterprises average cost per anchor is $54.
Answers (1)
New Questions in Business
While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Emma notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50.
Answers (1)
A not-for-profit nursing home has total expense of $20 million. Sales tax in the state is 7%. Expenses are broken down into salaries ($12 million), supplies ($6 million), and other miscellaneous not subject to tax ($2 million).
Answers (1)
The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,000; Liabilities = ?
Answers (1)
Bear Co. prepares its statement of cash flows using the indirect method. Bear sold equipment with a carrying value of $500,000 for cash of $400,000.
Answers (1)
Assume the total cost of a college education will be $345,000 when your child enters college in 18 years. You presently have $73,000 to invest.
Answers (2)