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question during heaton company 39 s first two years of operations the company report 4280263


During Heaton Company's first two years of operations, the company reported absoption ing net operating income as follows: ear 2 900,000 S 1,500,000 Sales S60 per unit 510,000 850,000 300,000 650.000 Gross margin Seling and administrative expenses 97,000 327,000 Net operating income per unt variable: $248,000 fixed each year The company's ss4 unit product cost is computed folows: Variable manufacturing overhead Fixed manufacturing overhead ($200,000 -20,000 units) bsorption costing unit product cost Forty peroent of fixed manufacturing overhead corsists of wages and salaries: the remainder oonsists of depreciation charges on production equipment and buildings. Production and cost data for the two years ore: 15,000 25.000 Required 1, Prepare a variable costing contribution format inoome statement for each year, Heaton Company Variable costing inoome statement Variable expenses Total feed expenses Net operating income (loss)

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