| Variable costs per unit |
| Manufacturing: |
| Direct Materials | | | | | $ 24.00 |
| Direct Labor | | | | | $ 14.00 |
| Variable manufacturing overhead | | | | | $ 2.00 |
| Variable selling and administrative | | | | | $ 4.00 |
| Fixed costs per year |
| Fixed manufacturing overhead | | | | | $ 800,000.00 |
| Fixed selling and administrative expenses | | | | | $ 496,000.00 |
| | | | | | Variable costing | Absorption costing |
| 1 - 2 |
| | Direct materials |
| | Direct labor |
| | Variable manufacturing overhead |
| | Fixed manufacturing overhead |
| | Unit product cost |
| 3-4 |
| | Sales |
| | Variable expenses: |
| | Variable cost of goods sold |
| | Variable selling and administrative |
| | Contribution margin |
| | Fixed expenses: |
| | Fixed manufacturing overhead |
| | Fixed selling and administrative |
| | Net operating gain (loss) |
| 5-6 | Sales |
| | Cost of goods sold |
| | Gross margin |
| | Selling and administrative expenses |
| | Net operating income |
| 7 | Variable costing net operating income |
| | Add: fixed manufacturing overhead |
| | deferred in inventory under absorption costing | | | | | | units |
| | Absorption costing net operating income | | | | | | per unit |
| 8 | Profit | = | Unit CM X Q - Fixed expenses |
| 9 |
| 10-11 | Sales |
| | Variable expenses: |
| | Variable cost of goods sold |
| | Variable selling and administrative |
| | Contribution margin |
| | Fixed expenses: |
| | Fixed manufacturing overhead |
| | Fixed selling and administrative |
| | Net operating gain (loss) |
| 12 |
| 13 | | | | Total | East | West |
| | Sales |
| | Variable expenses |
| | Contribution margin |
| | Traceable fixed expenses |
| | Region segment margin |
| | Common fixed expenses |
| | not traceable to regions |
| | Net operating gain (loss) |
| 14 | Foregone segment margin in the West region |
| | Additional contribution margin in the East region |
| | Increase (decrease) in profits if the West region is dropped |
| 15. | Additional advertising |
| | Additional contribution margin in the West region |
| | Increase in profits |
jack.dmnaldsok31
jack_donaldson_unit_4_homework.xlsx
