1. Charlassier Corporation manufactures and sells laptop computers and uses standard costing. For the month of September there was no beginning inventory, there were 3,000 units produced and 2,500 units sold. The manufacturing variable cost per unit is $385 and the variable operating cost per unit was $312.50. The fixed manufacturing cost is $450,000 and the fixed operating cost is $75,000. The selling price per unit is $925.
Required:Prepare the income statement for Charlassier Corporation for September under variable costing.
2.Sutton Hot Dog Stand sells hot dogs for $1.35. Variable costs are $1.05 per unit with fixed production costs of $90,000 per month at a level of 400,000 units. Fixed administrative costs total $30,000. Sales average 400,000 units per month, with planned production of 400,000 hot dogs.
Required:
a. What are breakeven unit sales under variable costing?
b. What are breakeven unit sales under absorption costing if she sells everything she prepares?
c. What are breakeven unit sales under absorption costing if average sales are 498,000 and planned production is changed to 500,000?