Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2014 2015Sales ($46 per unit) $ 1,104,000 $ 2,024,000Cost of goods sold ($31 per unit) 744,000 1,364,000Gross margin 360,000 660,000Selling and administrative expenses 293,000 333,000Net income $ 67,000 $ 327,000Additional Informationa. Sales and production data for these first two years follow. 2014 2015Units produced 34,000 34,000Units sold 24,000 44,000b. 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 $5Direct labor 8Variable overhead 8Fixed overhead ($340,000/34,000 units) 10Total product cost per unit $31c. Selling and administrative expenses consist of the following. 2014 2015Variable selling and administrative expenses ($2 per unit)$ 48,000 $88,000Fixed selling and administrative expenses 245,000 245,000Total selling and administrative expenses $ 293,000 333,0001. 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.)2. What are the differences between the absorption costing income and the variable costing income for these two years?

Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations. issued 2,900 shares of $0.01 par value common stock to investors for cash at $29 per share. borrowed $68,000 from the bank to provide additional funding to begin operations; the note is due in two years. paid $1,000 for the current month's rent of a warehouse and another $1,000 for next month's rent. paid $1,440 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). purchased furniture and fixtures for the warehouse for $16,000, paying $3,200 cash and the rest on account. the amount is due within 30 days. purchased for $2,800 cash the university of pennsylvania, notre dame, the university of texas at austin, and michigan state university baseball caps as inventory to sell online. placed advertisements on google for a total of $340 cash. sold caps totaling $1,900, half of which was charged on account. the cost of the caps sold was $1,100. (hint: make two entries.) made full payment for the furniture and fixtures purchased on account in (e). received $280 from a customer on account.

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?

Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.