Im not sure what step Im missing in requirement 2B Costing U

Costing Unlt Product Costs and Income Statements [L06-1, LO6-2, Faxed $320,eee produced 50,000 unts and sold 40.000 units

Solution

(2b)

Year 1

Year 2

Sales

(40000 * 54)

=2160000

(50000 * 54)

=2700000

COGS

(40000 * 57.4)

=2296000

(50000 * 59)

=2950000

Gross Margin

(136000)

(250000)

Selling & Adm Exp

(4 * 40000) + 80000

=240000

(4 * 50000) + 80000

=280000

Net Operating Income

(376000)

(530000)

	Year 1	Year 2
Sales	(40000 * 54) =2160000	(50000 * 54) =2700000
COGS	(40000 * 57.4) =2296000	(50000 * 59) =2950000
Gross Margin	(136000)	(250000)
Selling & Adm Exp	(4 * 40000) + 80000 =240000	(4 * 50000) + 80000 =280000
Net Operating Income	(376000)	(530000)