Question

Use the following data to answer the question

	2012	2013	2014
Unit Data
Beginning Inventory	0	?	?
Production	1000	800	1250
Sales	700	800	1500
variable costs
manufacturing cost per unit	$900	$900	$900
marketing cost per unit sold	$600	$600	$600
Fixed costs
Manufacturing costs	$450,000	$450,000	$450,000
Marketing costs	$140,000	$140,000	$140,000

Using variable costing, what is the net income in 2012 if each unit sells for $3000?

Answer 1

ANSWER :-

​​​​​​Calculation of the net income in 2012 if each unit sells for $3000 using variable costing :-

Particulars	Amount
Sales (700*3000)	21,00,000
Less:- Variable cost
Manufacturing cost (700*900)	630,000
Marketing cost. (700*600)	420,000
Less:- Fixed costs
Manufacturing cost	450,000
Marketing cost	140,000
NET INCOME	460,000

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