138. Philadelphia Company has the following information for March:
|
Sales
|
$450,000
|
|
Variable cost of goods sold
|
230,000
|
|
Fixed manufacturing costs
|
70,000
|
|
Variable selling and administrative expenses
|
52,000
|
|
Fixed selling and administrating expenses
|
35,000
|
|
|
|
Determine the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Philadelphia Company.
(a) $220,000 ($450,000 - $230,000)
(b) $168,000 ($220,000 - $52,000)
(c) $63,000 ($168,000 - $70,000 - $35,000)
139. Cades Company has the following information for March:
|
Sales
|
$500,000
|
|
Variable cost of goods sold
|
245,000
|
|
Fixed manufacturing costs
|
85,000
|
|
Variable selling and administrative expenses
|
56,000
|
|
Fixed selling and administrating expenses
|
50,000
|
|
|
|
Determine the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Cades Company.
(a) $255,000 ($500,000 - $245,000)
(b) $199,000 ($255,000 - $56,000)
(c) $64,000 ($199,000 - $85,000 - $50,000)
140. Fixed costs are $10 per unit and variable costs are $25 per unit. Production was 13,000 units, while sales were 12,000 units. Determine (a) whether variable cost income from operations is less than or greater than absorption costing income from operations, and (b) the difference in variable costing and absorption costing income from operations.
141. Fixed costs are $50 per unit and variable costs are $125 per unit. Production was 130,000 units, while sales were 125,000 units. Determine (a) whether variable cost income from operations is less than or greater than absorption costing income from operations, and (b) the difference in variable costing and absorption costing income from operations.
142. The beginning inventory is 10,000 units. All of the units manufactured during the period and 8,000 units of the beginning inventory were sold. The beginning inventory fixed costs are $50 per unit, and variable costs are $300 per unit. Determine (a) whether variable costing income from operations is less than or greater than absorption costing income from operations, and (b) the difference in variable costing and absorption income from operations.