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    avie2013's Avatar
    avie2013 Posts: 5, Reputation: 1
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    #1

    May 9, 2012, 09:35 PM
    Convert the Ekland absorption income statement to a contribution margin income statem
    All divisions use standard absorption costing. The division has the capacity to produce 50,000 units a quarter and quarterly fixed overhead amounts to $500,000. Variable production cost is $45 per unit. Roland has been looking at the report for the first three months of the year and is not happy with the results
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    May 10, 2012, 11:30 PM
    Quote Originally Posted by avie2013 View Post
    All divisions use standard absorption costing. The division has the capacity to produce 50,000 units a quater and quarterly fixed overhead amounts to $500,000. Variable production cost is $45 per unit. Roland has been looking at the report for the first three months of the year and is not happy with the results
    I have no doubt he is unhappy with insufficient information it is impossible to analyse or prepare a report
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