Roller Paint Co

question 83

Essay

Roller Paint Co.reported the following data for the month of September.There were no beginning inventories and all units were completed no work in process.
In the month of September, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.
a Prepare a variable costing income statement.
b Prepare an absorption costing income statement.
c Briefly explain why there is a difference in income from operations between the two methods.
a.Relevant range
b.Break-even point
c.Contribution margin
d.Fixed costs
e.Variable costs

---

Definitions:

Britain

An island in the North Atlantic which constitutes the major part of the United Kingdom, encompassing England, Scotland, and Wales.

First-Cousin Marriage

A marriage between individuals who have one set of grandparents in common, legally and culturally allowed in some societies but prohibited in others.

Birth Defects

Physical or biochemical abnormalities present from birth, which can cause physical or mental disabilities.

Infant Mortality

The death rate of infants under one year of age, a significant indicator of health care quality in a region.