have two questions
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 700000.
2)Aivars company reports the following variable cost income statement for its single product this company sales totaled 50000 units but its productin was
8000 units it had no begining finished goods inventoey for that period.
sales(50000 units x60 per unit)3000000
variable expenses
variable manufacturing expense (50000 units x28 per unit)1400000
varible selling and admin expenses(50000 units x5 per unit)250000
total variable expenses 1650000
contribution margin1350000
fixed expenses
fixed over head 320000
fixed selling and admin expenses 160000
total fixed expenses 480000
net income 870000
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