## Answers

profit as per variable costing method is $260,000

Under variable costing method, total fixed expenditure incurred will be reduced from contribution

KENZI KAYAKING Variable Costing Income Statement - Particulars Acaput Amomt Sales → 825 x $1075 886.875 Less: Variable costs. variable Production costs 309 375 825 × $375 variable selling & ad minEng 85.000 Contribution margina (394,375) 492,500 LESS:- Fixed Fimed Fixed Costs Production costs Selling Expenses 107500 38,000 125,000 (232.500) 260.000 Profit Requirement 2 Profit as per variable Costing Method = $ 260,000 Profit as per absorption Costing method = $285,000 Difference $ 25,000 The Dollar Difference in variable costing Income & absorption costing income = 828 - 825 mits X $30.30 p.u of Fined overhed

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