| | Rini Company ($ in 000) |
| | Sales | 20,000 |
| | Schedule of Variable Manufacturing Costs: | | | Part 1 - Use Data as Provided for Rini Company |
| | | | | 1. Create Traditional Absorption Income Statement Through Operating Income |
| | Variable Costs | | | 2. Create Contribution Income Statement Through Operating Income |
| | Direct Materials | 7000 |
| | Direct Labor | 4000 | | Part II -Assume a 10% increase in sales |
| | Supplies | 850 | | 1. Create Traditional Absorption Income Statement Through Operating Income |
| | Power and other Variable Overhead | 150 | | 2. Create Contribution Income Statement Through Operating Income |
| | Fixed Costs |
| | Manager Salaries | 900 |
| | Annual Employee Picnic | 100 |
| | Depreciation on Plant Equipment | 1800 |
| | Insurance | 50 |
| | Property Taxes | 150 |
| | Selling Expenses: |
| | Sales Commissions | 700 |
| | Shipping Expenses for products sold | 300 |
| | Fixed Advertising | 700 |
| | Fixed Sales Salaries | 1000 |
| | Other Fixed Selling Expenses | 300 |
| | Administrative Expenses: |
| | Variable Data Entry Wages | 80 |
| | Variable Programming Fees | 20 |
| | Fixed Office Salaries | 300 |
| | Depreciation on Office Equipment | 100 |
| | Public Accounting Fees (Fixed) | 40 |
| | Legal Fees (Fixed) | 100 |
| | Other Fixed (Fixed) | 360 |