The Variable Costing Income Statement for Jackson Company for 2011

question 17

Essay

The variable costing income statement for Jackson Company for 2011 is as follows: $\begin{array}{lll}\text { Sales (5,000 units) } & & £ 100,000 \\\text { Variable expenses: } & & \\\text { Cost of goods sold } & £ 30,000\\\text { Selling ( } 10 \% \text { of sales) } & -10,000 & 40,000 \\\text { Contributi on margin } & & £ 60,000\\\text { Fixed expenses: }\\\text { Manufacturing overhead } & £ 24,000 & \\\text { Administrative } & -14,400 & \underline{38,400} \\\text { Net income } & & \underline{£ 21,600}\end{array}$


$\text { Selected data for } 2011 \text { concerning the operations of the company are as follows: }$

$\begin{array}{ll}\text { Beginning inventory } & -0 \text { - units } \\\text { Units produced } & 8,000 \text { units }\end{array}$

$\text { Manufacturing costs: }$
$\begin{array}{ll}\text { Direct labour } & \text { £3.00 per unit } \\\text { Direct materials } & 1.60 \text { per unit } \\\text { Variable overhead } & 1.40 \text { per unit }\end{array}$

---

Definitions:

Personal Identification

The process of recognizing and verifying an individual's identity through various means.

Subordinating Member

A member of a group or organization who is ranked lower and is subject to the authority or control of others.

Social Identification

The process by which individuals associate themselves with specific groups, adopting the group's characteristics to form their identity.

Role Model

An individual whose behavior, example, or success is or can be emulated by others, especially by younger people.