SIMS COMPANY Variable Costing
Income Statement
Manufacturing costs
Direct material $35 per unit
Direct labor $55per unit
Overhead costs
Variable $30 per unit
Fixed $7,350,000
Selling and administrative costs for the year
Variable $7,50,000
Fixed $4,500,000
Production and sales of the year
Units produced 105,000
Units sold 75,000 units
Sales price per unit $ 3,50 per unit
1. Prepare an income statement for the year using variable costing.
2. Prepare an income statement for the year using absorption costing.

Overspeculation and a decrease in consumer confidence are both leading factors of: ?

An outside manufacturer has offered to produce 60,000 daks and ship them directly to andretti's customers. if andretti company accepts this offer, the facilities that it uses to produce daks would be idle; however, fixed manufacturing overhead costs would be reduced by 75%. because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. what is andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?