Momentum bikes manufactures a basic road bicycle production


Momentum Bikes manufactures a basic road bicycle. Production and sales data for the most recent year are as follows (no beginning inventory):

            Variable production costs                                   $90 per bike

            Fixed production costs                                          $450,000

            Variable selling & administrative costs                 $22 per bike

            Fixed selling & administrative costs                     $500,000

            Selling price                                                          $200 per bike

            Production                                                             20,000 bikes

            Sales                                                                       17,000 bikes

Instructions

Prepare a brief income statement using variable costing.

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Financial Accounting: Momentum bikes manufactures a basic road bicycle production
Reference No:- TGS01210950

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