Stanczyk Inc. started operations in January 2025. The company produces and sells cabinets for $5,200 each. The following information pertains to the cost and sales of the cabinets each year:   Variable manufacturing costs $2,300 per unit   Variable operating costs $65 per unit   Fixed manufacturing costs $25,000   Fixed operating costs $12,000 The company produced 25 units per year for 2025, 2026, and 2027. The company sold 22 units in 2025, 20 units in 2026, and 26 units in 2027. It reported no volume variances for the three-year period. For 2025,   Question options:   a)  the operating income for absorption costing may be greater than, equal to or less than operating income under variable costing.   b)  the operating income for absorption costing equaled operating income for variable costing.   c)  variable costing operating income exceeded absorption costing operating income by $3,000.   d)  absorption costing operating income exceeded variable costing operating income by $3,000.

Blanchard Company manufactures a single product that sells for $200 per unit and whose total variable costs are $182 per unit. The company's annual fixed costs are $637,000. The sales manager predicts that annual sales of the company's product will soon reach 40,700 units and its price will increase to $207 per unit. According to the production manager, variable costs are expected to increase to $147 per unit but fixed costs will remain at $637,000. The income tax rate is 30%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes?

Hewitt Enterprises is a business that buys and sells printers at a profit and has the following information available for the month of June 2020: There were 100 printers in the warehouse on 1Jun On 10Jun, 50 printers were bought from Printing Traders at R50 per printer. Another purchase of 50 printers were made from the same company for the same price on 20Jun 80 printers were sold during the month. The selling price for one printer is R90. Calculate the gross profit of Hewitt Enterprise for the month of June 2020

Williams Company bottles and distributes Supe Juice, a soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales: $1,800,000                    Selling expenses—variable: $70,000 Direct materials: 430,000                   Selling expenses—fixed: 65,000 Direct labor: 360,000              Administrative expenses—variable: 20,000 Manufacturing overhead—variable: 380,000             Administrative expenses—fixed: 60,000 Manufacturing overhead—fixed: 280,000     Prepare a CVP income statement for 2020 based on management’s estimates.        Calculate variable cost per bottle. Compute the break-even point in units. Compute the break-even point in dollars. Compute the contribution margin ratio. Compute the margin of safety ratio. Determine the sales dollars required to earn net income of $180,000.

Zack Co. sells three sizes of bags: small, medium, and large. The company has annual fixed costs of P19,520,000. For the past several years, 20% of Hugo's sales have been the small and large bags with the remaining 60% being the medium size. Zack Co. does not expect this to change in the upcoming year. The following information is also available for each of the bags:   Small   Medium   Large Sales price per unit P400   P700   P1,750 Variable costs per unit 150   200   450 Required: How many total bags does the company need to produce and sell in order to break even? How many medium bags need to be sold in order to break even?  If Zack experiences a higher demand of large bags than it anticipated, will the break-even point increase, decrease, or stay the same? Why?

In 2012, Grant Co. sold 160,000 units of its product at a selling price of $40. The variable cost per unit was $30, and Grant reported net income for the year of $200,000. What was the amount of Grant's fixed costs for the year?

Herro, Inc. sells Product TH14 for $57.00 per unit. Variable costs for Product TH14 are $41.00 per unit, and monthly fixed costs are $467,000. If Herro desires a monthly net income of $14,000, how many units of Product TH 14 must be sold per month?

In April of 2021, Best Speaker Company expects to sell 470 bluetooth speaker units. Expenses are as follows:   Cost of goods sold is P178 per unit Shipping costs are P31 per unit Miscellaneous costs are P10 per unit Salaries are P80,000 per month Rent is P20,000 per month Utilities are P10,000 per month Calculate the following for April 2021:   A. Variable Operating Expense    B. Fixed Operating Expense   C. Total Operating Expense

The Slap Shot Company is located in Toronto, Canada and they manufacture hockey sticks. Ice hockey is a very popular sport during the winter in Canada.   In 2019, the company produced 25,000 hockey sticks and sold 18,000 hockey sticks. In 2020, the production and sales results were exactly reversed as the company produced 18,000 hockey sticks and sold 25,000 hockey sticks.   The selling price of the hockey stick is $100, the variable manufacturing costs are $40 per unit, variable selling expenses are $8 per unit, fixed manufacturing costs is $540,000 in total, and $200,000 is the total cost for fixed administrative expenses.   Instructions 1)    Using the information provided, prepare an income statement for the 2019 and 2020 year using variable costing. 2)    Using the information provided, prepare an income statement for 2019 and 2020 using absorption costing. 3)    Identify the method that is aligned to generally acceptable accounting principles.

Detox corp planned to sell 25,000 units during the next quarter at a selling price of P52 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula P22 per unit sold P172,000 per quarter 5% of sales P54,000 per quarter + P6.00 per unit sold P82,000 per quarter P9,200 per quarter P52,000 per quarter 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.