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write 350 words after completing exercise 19 17 wileyplus
Write a paper of no more than 350 words after completing Exercise 19-17 in WileyPLUS in which you respond to the following questions:
- In this case, would it be better to use the variable or absorption costing method, and why?
- What are the benefits of the two methods?
- Which method would lead to the best decision when a competitor is submitting a lower bid for your product?
Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
|Variable Cost per Unit|
|Variable manufacturing overhead||$6.04|
|Variable selling and administrative expenses||$4.10|
|Fixed Costs per Year|
|Fixed manufacturing overhead||$246,568|
|Fixed selling and administrative expenses||$252,105|
Polk Company sells the fishing lures for $26.25. During 2012, the company sold 80,600 lures and produced 95,200 lures.