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Sagot :
Answer:
Results are below.
Explanation:
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Manufacturing contribution margin= 912,000 - 474,000
Manufacturing contribution margin= 438,000
Now, the total contribution margin:
Total contribution margin= manufacturing contribution margin - Variable selling and administrative expenses
Total contribution margin= 438,000 - 238,100
Total contribution margin= $199,900
Finally, the income statement:
Sales= 912,000
Total Variable cost= 474,000 + 238,100= (712,100)
Total contribution margin= 199,900
Fixed manufacturing costs= (82,000)
Fixed selling and administrative expenses= (54,700)
Net operating income= 63,200
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