Author Question: The manager of the manufacturing division of Iowa Windows does not understand why income went down ... (Read 10 times)

rl · **on:** Mar 6, 2021

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:

January

February

Units produced

40,000

30,000

Units sold

30,000

40,000

Sales

$600,000

$800,000

Beginning inventory

0

150,000

Cost of production

600,000

550,000

Ending inventory

150,000

0

Operating income

70,000

35,000

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?

bdobbins · **Reply #1 on:** Mar 6, 2021

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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.

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