acc403module2case - TUI UNIVERSITY PRINCIPLES OF ACCOUNTING...

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TUI UNIVERSITY PRINCIPLES OF ACCOUNTING ACC 403 MODULE 2 Case Assignment Dr Annette Hebble Gennaro A. Penn February 10, 2010
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Absorption Income Statement Revenue $10,005,000.00 less Cost of Goods Sold $3,290,500.00 Gross Profit on Sales $6,715,000.00 Operating Expenses $1,200,000.00 Net Income $5,515,000.00 Variable Costing Approach Revenue $10,005,000.00 Variable Costs $1,960,000.00 Contribution Margin $8,045,000.00 Fixed Costs $2,800,000.00 Net Income $5,245,000.00 Production capacity 400,000 units Ending inventory 55,000 units Sales 345,000 units Selling price $29.00 per unit Variable manufacturing cost (direct material: $3.50  and direct labor: $1.40) per unit $4.90 per unit Variable operating/selling cost per unit $1.20 per unit Total fixed manufacturing overhead $1,600,000 $1,200,000 Production 400,000 x $29.00 = $11,600,000.00 Ending Inventory 55,000 x $29.00 = $1,595,000.00 Sales 345,000 x $29.00 = $10,005,000.00 (Revenue)
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acc403module2case - TUI UNIVERSITY PRINCIPLES OF ACCOUNTING...

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