50.0 % 3 . ( TCO C ) Heckaman Corporation produces and sells a single product . Data concerning that product appear below . Selling price per unit $ 115.00 Variable expense per unit $ 56.35 Fixed expense per month $ 299,115 4 . TCO B ) Industrial Supply Corporation uses the weighted-average method in its process costing system . Data concerning the first processing department for the most recent month are listed below . Work in process , beginning : Units in beginning work in process inventory 400 Materials costs $ 6,900 Conversion costs $ 2,500 Percent complete for materials 80 % Percent complete for conversion 15 % 5 . ( TCO D ) Topple Company produces a single product . Operating data for the company and its absorption costing income statement for the last year are presented below . Units in beginning inventory 0 Units produced 9,000 Units sold 7,000 Sales $ 100,000 Variable manufacturing costs are $ 4 per unit . Fixed manufacturing overhead totals $ 18,000 for the year . The fixed manufacturing overhead was applied at a rate of $ 2 per unit . Variable selling and administrative expenses were $ 1 per unit sold . Required : Prepare a new income statement for the year using variable costing . Comment on the differences between the absorption costing and the variable costing income statements . ( Points : 30 ) 6 . ( TCO I ) ( Ignore income taxes in this problem .) Simpson Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery . The machinery will cost $ 700,000 , is Required : Part A : What is the net present value of this investment opportunity ?