5. Market Co. sells its products for $80 each. The current production level is 25,000...
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5. Market Co. sells its products for $80 each. The current production level is 25,000 units, although only 20,000 units are anticipated to be sold. Unit manufacturing costs are: Direct materials $12.50 Direct labor $20.00 Variable Manufacturing Costs $10.00 Total fixed manufacturing Costs $215,000 Marketing expenses $7 per unit, plus $72,000 per year Required: (A) Prepare an income statement using absorption costing and (B) prepare an income statement using variable costing.
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