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a$.$ Prepare an income statement based on full absorption costing. c$.$ Assume that you must decide quickly whether to accept a special one$-$time order for $1,000$ units for $$15$ per unit.

Which income statement presents the most relevant data:

Determine the apparent profit or loss on the special order based solely on these data.

Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number.

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d$.$ If the ending inventory is destroyed by fire, which costing approach would you use as a basis for filing an insurance claim for the fire loss? Why?

Select the most appropriate statement.

Absorption costing approach because the cost should include a reasonable portion of fixed manufacturing costs.

Variable costing approach because the cost should include a reasonable portion of fixed manufacturing costs.

Only use a negative sign with your answer for net income $($loss$),$ if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the

nearest whole number, when applicable.

b$.$ Prepare an income statement based on variable costing.

Only use a negative sign with your answer for net income $($loss$),$ if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the

nearest whole number, when applicable.

c$.$ Assume that you must decide quickly whether to accept a special one$-$time order for $1,000$ units for $$15$ per unit.

Which income statement presents the most relevant data:

Determine the apparent profit or loss on the special order based solely on these data.

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