Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2014 2015
Sales ($46 per unit) $1,104,000 $2,024,000
Cost of goods sold ($31 per unit) 744,000 1,364,000
Gross margin 360,000 660,000
Selling and administrative expenses 293,000 333,000
Net income $67,000 $327,000

Additional Information

a. Sales and production data for these first two years follow.

2014 2015
Units produced 34,000 34,000
Units sold 24,000 44,000

b. Variable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $31 per unit product cost consists of the following.

Direct materials $5
Direct labor 8
Variable overhead 8

Fixed overhead ($340,000/34,000 units) 10
Total product cost per unit $31

c. Selling and administrative expenses consist of the following.

2014 2015
Variable selling and administrative expenses ($2 per unit) $48,000 $88,000
Fixed selling and administrative expenses 245,000 245,000
Total selling and administrative expenses $293,000 $333,000

Requried:
a. Complete income statements for the company for each of its first two years under variable costing.(Loss amounts should be entered with a minus sign.)
b. What are the differences between the absorption costing income and the variable costing income for these two years?

Imagine us is a startup that offers high definition 3d prenatal ultrasounds for high-end customers. the service process includes four activities that are conducted in the sequence described below. (the time required for each activity is shown in parentheses): activity 1: welcome a patient and explain the procedure. (20 minutes)activity 2: prep the patient (e.g., show them to the room, apply ultrasound gel). (17 minutes) (*your id number represents the amount of time needed to complete this task)activity 3: take images. (5 minutes)activity 4: discuss diagnostic with patient. (20 minutes)at each location there are employees (servers) s1, s2, and s3. the assignment of tasks to servers is the following: s1 does activities 1 and 2.s2 does activity 3.s3 does activity 4.a. what is the capacity of this process (in customers per hour)? b. suppose 3 patients arrive every hour on average. ignoring any “start of day” or “end of day” effects, what are the utilizations of all three servers (%)? c. suppose each activity can be done by any server and any server can do any set of activities. however, each activity is done by only one server. for example, a possible assignment includes: s1 does activity 1, s2 does activity 2, and s3 does activities 3 and 4. of course, the original assignment of servers to activities is also feasible. what is the maximum capacity of the process (in customers per hour)? d. now consider the capacity measures in (c) and (a), what is the percentage change? why can you improve capacity without using additional resources? (there is no free lunch, right? )note: for all hw assignments, show your process of getting the results. only providing the final answers is not acceptable and will get 0%. if necessary, use a separate sheet of paper to show your work.