Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement
Sales (42,000 units × $41.60 per unit) $1,747,200
Cost of goods sold (42,000 units × $23 per unit) 966,000
Gross margin 781,200
Selling and administrative expenses 441,000
Net operating income $340,200

The company’s selling and administrative expenses consist of $315,000 per year in fixed expenses and $3 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows:

Direct materials $10
Direct labor 5
Variable manufacturing overhead 2
Fixed manufacturing overhead ($288,000 ÷ 48,000 units) 6
Absorption costing unit product cost $23

Required:
a. Redo the company’s income statement in the contribution format using variable costing.
b. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above.

Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.

According to the naeyc curriculum is effective when all of the following occur except