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sandy scott- obtain a patent and a small electrial device / then set up scott product inc to produce

During the ist month of operation the device was selling on the market very well.. ms scott was looking forward to a healty profit. yet she was angry to see a loss 4 the month on the income statement. the statement was prepare by her account service– Scott product inc- sale 40,000 unit=200.000 — vaiable exp- variable cost of good sold=80,000; variable selling exp=30,000=80k plus 30k=110k – contribition margin= 90,000– fix man- overhead=75,000- fix seeling exp=20,000 total=95,000 net operating took a loss of 5000/ ms scott is angry because of the loss 4 the month . She was plan to use her statement to show investor to purchase stock in hercompany/ a cpa friend of ms scott said she should use the absorption cost rather then the variable cost, the cpa inform ms scott if she use the absorption cost rather then variable then she would have made a profit for the month. base on the data of the company operation/ scott product inc- unit produce=60,000; unit sold =40,000- variable cost per unit– direct material=1.00; direct labor= 80 cents; variable overhead = 20 cents; variable selling exp= 75 cents/ question i need to complete the following-1. compare the unit product cost under absorpotion costing/2. redo the company income statement 4 the month using absorotion costing. 3. Was ms scott cpa friend was telling her the truth that she would make a profit; i need to explain/ question during the 2nd month of operation the company again produce 50,000 unit but sold 60,000 unit assume no change in total fix cost/ i need o prepare a contribtion format income statement 4 the month using variable costing/ i needto prepare a income statement 4 the month using absorption costing/ i need to reconcile the variable costing and cost operation income

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