The Following Data Has Been Provided by Zimtex,Inc There Are No Beginning Inventories

question 88

Essay

The following data has been provided by Zimtex,Inc.for the year ended December 31,2017.
$$\begin{array} { | l |r | l|} \hline \text { Units produced and sold } & 5,500& \text { units } \\\hline \text { Sales price } & \$ 300& \text { per unit } \\\hline \text { Direct materials } & \$ 90& \text { per unit } \\\hline \text { Direct labor } & \$ 50& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 40& \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 110,000 &\text { per year } \\\hline \text { Fixed selling and administrative costs } & \$ 150,000 &\text { per year } \\\hline\end{array}$$ There are no beginning inventories.Prepare an income statement using the contribution margin format.

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Definitions:

Forfeiture

The loss of property or rights as a penalty for wrongdoing, often related to criminal activity or breaches of contract.

Missed Payment

Failure to make a scheduled payment on a loan or other financial obligation by the due date.

Strict Foreclosure

A legal process by which a secured lender can take possession of the collateral property without the need to sell it, typically when the value of the collateral is less than the debt owed.

Satisfaction of Debt

Satisfaction of Debt is the fulfillment of a financial obligation, such as the repayment of a loan, thereby releasing the debtor from further liability.