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Company XYZ has the following costs and activities associated with the production and sale of one...

Company XYZ has the following costs and activities associated with the production and sale of one of its products: Direct material $3.00 / unit Fixed OH (total) $200,000 Direct labor $2.50 / unit Fixed expenses (total) $75,000 Var. OH $1.80 / unit Production 55,000 units Var. expenses $0.25 / unit Sales 48,000 units Selling price $25 / unit Management estimates the annual capacity to be 50,000. Prepare the income statement based on variable costing.

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