Required information
The following information applies to the questions displayed below.
Cool Sky reports the following for its first year of operations. The company produced units and sold units at a price of $ per unit.
Direct materials
Direct labor
variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$ per unit
$ per unit
$ per unit
$ per year
$ per unit
$ per year
b Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
tableIncome Statement Variable CostingSalesLess: Variable expenses,,Variable cost of goods sold,,Variable selling and administrative expenses,,Contribution margin,,Less: Fixed expenses,Fixed overhead,Fixed selling and administrative expenses,,Income
