Can somebody check my work on the variable costing income statement in the screenshot attached? Summarized data for 2019 (the first year of operations) for Gorman Products, In. are as follows Sales...


Can somebody check my work on the variable costing income statement in the screenshot attached?



Summarized data for 2019 (the first year of operations) for Gorman Products, In. are as follows





























































Sales (70,000 units)$2,800,000
Production costs (80,000 units):
     Direct materials880,000
     Direct labor720,000
Manufacturing overhead:
     Variable544,000
     Fixed320,000
Operating expenses:
     Variable175,000
     Fixed240,000
Depreciation on equipment60,000
Real estate taxes18,000
Personal property taxes (inventory and equipment28,000
Personnel department expenses30,000


Problem


b) Prepare an income statement based on variable costing



Analysis of differential revenues and costs -- special order<br>a<br>include the formula here<br>Increased revenue<br>Differential costs:<br>Selling:<br>Per unit variable cost<br>Units in special order<br>Total variable costs<br>Fixed cost increment:<br>Total volume required by special order<br>Extra volume<br>Extra cost<br>Profit/(loss) on special order<br>b<br>C<br>

Extracted text: Analysis of differential revenues and costs -- special order a include the formula here Increased revenue Differential costs: Selling: Per unit variable cost Units in special order Total variable costs Fixed cost increment: Total volume required by special order Extra volume Extra cost Profit/(loss) on special order b C

Jun 02, 2022
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