Use the following to answer questions 14 and 15 Quasimodo Co

Use the following to answer questions 14 and 15: Quasimodo Company produces and sells only one product. The following data relates to Quasimodo\'s operations for the year just ended: Selling price per unit .. $121 Units in beginning finished goods inventory. Units produced. 0 4,300 4,000 300 Units in ending finished goods inventory Variable costs per unit: Direct materials Direct labor. Variable manufacturing overhead . Variable selling and administrative.... $44 $35 $7 $5 Fixed costs: Fixed manufacturing Fixed selling and administrative. $34,400

Solution

1.14.d.$13,600.

variable cost income statement:

1.15.A.$16,000

absorption costing income statement:

sales revenue ($121 * 4,000)	484,000
less: variable costs [(44+35+7+5)*4,000]	(364,000)
contribution	120,000
less: fixed costs (34,400+72,000)	(106,400)
operating income	13,600