Given:
Fill out the predicted 2013 variable and absorption income statements immediately below for the cheese segment of Great Lakes Dairy. There was ending inventory of 5,000 units on December 31, 2012. Assume production for 2013 will be 80,000 and 85,000 units will be sold and that inventory costs remain the same between 2012 and 2013.
Variable selling and administrative expenses per unit - $.20
Sales - $350,000
CM per unit - $1.80
Fixed Selling and Administrative - $22,000
Fixed MOH - $35,000

Calculated:
Per unit - $.87
Beg. Inventory - 5,000
Variable Manufacturing costs - ?
Goods available for sale - 85,000
Ending inventory - 0
Variable cost of goods sold - $180,000
Variable selling and administrative - $17,000
Contribution Margin - $153,000
Net operating income - $96,000