Patterson Inc.'s income statement, using absorption costing is as follows: Patterson produced 3,000 units and sold 2,500 units. The company shows a cost per unit for variable manufacturing costs of $20 per unit and $1 per unit for variable operating expenses. If the manager would like to use the same period and create a variable costing income statement, what would it look like?

Question

Patterson Inc.'s income statement, using absorption costing is as follows:  Patterson produced 3,000 units and sold 2,500 units. The company shows a cost per unit for variable manufacturing costs of $20 per unit and $1 per unit for variable operating expenses. If the manager would like to use the same period and create a variable costing income statement, what would it look like?

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The Answer of Patterson Inc.'s income statement, using absorption costing is as follows:  Patterson produced 3,000 units and sold 2,500 units. The company shows a cost per unit for variable manufacturing costs of $20 per unit and $1 per unit for variable operating expenses. If the manager would like to use the same period and create a variable costing income statement, what would it look like?