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Below find production and sales information for Herrestad Company. We will use this same company for all the SLPs in this course.
Selling price per unit
Variable costs per unit
Variable selling and administrative
Fixed manufacturing overhead
Fixed selling and administrative
Absorption Income Statement
For the period ending Dec. 31, 2011
Cost of goods sold
Gross profit (margin)
Selling and administrative expenses
Prepare a contribution margin (behavioral, variable) income statement for Herrestad Company. Prepare a second version assuming the selling price per unit increases to $320 per unit.
Use the original information to:
The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format.
This question tested their knowledge of intended reporting but more importantly requisite them to apply their knowledge and consider the impact from the investors' perspective.
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