1)Assume a company sells a given product for 85 per unit how many units must be sold to break even if the variable selling cost are 27 per unit. variable production cost are 23 per unit, and total fixed costs are 700,000.
2)Aivars company reports the following variable cost income statement for its single product this company sales totaled 50,000 units but its productin was 80,00 units it had no begining finished goods inventoey for that period.
- sales(50,000 units x60 per unit)3000000
- variable expenses
- variable manufacturing expense (50,000 units x28 per unit)1400000
- varible selling and admin expenses(50,000 units x5 per unit)250,000
- total variable expenses 1650000
- contribution margin1,350000
- fixed expenses
- fixed over head 320000
- fixed selling and admin expenses 160,000
- total fixed expenses 480,000
- net income 870,000
convert this companys variable costing income statement to an absorption costing income statement.explain the difference in income between the variable costing and absorption costing statement.