Trident ACC403 module 4 SLP

Module 4 – SLPMANAGERIAL ACCOUNTING – VARIABLE COSTINGWe’re using a different fictitious company for the last two modules, the managerial accounting portion of this course. Below find production and sales information for Lewis Company.Product informationProd BBeginning inventory0Units produced10,000Units sold9,000Selling price per unit$300Variable costs per unitDirect material120Direct labor60Variable overhead40Variable selling and administrative10Fixed costsFixed manufacturing overhead250,000Fixed selling and administrative100,000Lewis CompanyAbsorption Income StatementFor the period ending Dec. 31, 2012Sales$2,700,000Cost of goods sold2,205,000Gross profit (margin)$495,000Selling and administrative expenses190,000Net income$305,000Prepare a contribution margin (behavioral, variable) income statement for Lewis Company, compare net operating profit from a contribution margin income statement with net income from an absorption income statement, and explain why this difference happens. Prepare a second version assuming the selling price per unit increases to $330 per unit.Use the original information to:Determine the number of units the company must sell to break even for the year?Compute break even assuming direct materials cost increase from $120 to $150, but all information remains the same.Assignment ExpectationsIt is important to answer the questions as posed. The document should be two to four pages and written in a clear and concise manner or present tables as required. Support your discussion or tables with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved. You can turn in the spreadsheet instead. The content should be equivalent to the page length suggested for a word processing document.