This topic contains a solution. Click here to go to the answer

Author Question: The manager of the manufacturing division of Iowa Windows does not understand why income went down ... (Read 40 times)

rl

  • Hero Member
  • *****
  • Posts: 579
The manager of the manufacturing division of Iowa Windows does not understand why income went down when sales went up. Some of the information he has selected for evaluation include:

JanuaryFebruary
Units produced40,00030,000
Units sold30,00040,000 
Sales$600,000$800,000
Beginning inventory0150,000
Cost of production600,000550,000
Ending inventory150,0000
Operating income70,00035,000 

The division operated at normal capacity during January.
Variable manufacturing cost per unit was $5, and the fixed costs were $400,000.
Selling and administrative expenses were all fixed. 

Required:
Explain the profit differences. How would variable costing income statements help the manager understand the division's operating income?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by rl on Mar 6, 2021

bdobbins

  • Sr. Member
  • ****
  • Posts: 326
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly




rl

  • Member
  • Posts: 579
Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


bdobbins

  • Member
  • Posts: 326
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

For a complete list of videos, visit our video library