Tamworth Company Prepared the Following Absorption-Costing Income Statement for the Year

Essay

Tamworth Company prepared the following absorption-costing income statement for the year ended May 31,2018.
$$\begin{array} { l r } \text { Sales (16 000 units) } & \$ 320000 \\\text { Cost of goods sold } & 216000 \\\text { Gross margin } & \$ 104000 \\\text { Selling and administrative expenses } & \underline { 46000 } \\\text { Operating profit } & \underline {\$ 58000}\end{array}$$
Additional information follows:
Selling and administrative expenses include $1.50 of variable cost per unit sold.There was no beginning inventory,and 17 500 units were produced.Variable manufacturing costs were $11 per unit.Actual fixed costs were equal to budgeted fixed costs.
Required:
Prepare a variable-costing income statement for the same period.
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