tamarisk, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows. Quarter Units First 96,000 Second 180,000 Third 660,000 Fourth 144,000 Annual total 1,080,000 Tamarisk incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Tamarisk will incur fixed manufacturing costs of $864,000 and fixed nonmanufacturing costs of $1,296,000. Tamarisk will sell its product for $4 per unit. (a) Determine the amount of net income Tamarisk will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net income (Integral Approach) $ $ $ $ Net income (Discrete Approach) $ $ $ $ (b1) Compute Tamarisk’s profit margin on sales for each of the four quarters of 2020 under both the integral and discrete approaches.
tamarisk, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows.
|
Quarter |
Units |
||
|
First |
96,000 |
||
|
Second |
180,000 |
||
|
Third |
660,000 |
||
|
Fourth |
144,000 |
||
|
Annual total |
1,080,000 |
Tamarisk incurs variable
(a)
Determine the amount of net income Tamarisk will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach.
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
||||||
|
Net income (Integral Approach) |
$ |
$ |
$ |
$ |
|||||
|
Net income (Discrete Approach) |
$ |
$ |
$ |
$ |
(b1)
Compute Tamarisk’s profit margin on sales for each of the four quarters of 2020 under both the integral and discrete approaches.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
