The Variable Costing Income Statement for Jackson Company for 2011

The variable costing income statement for Jackson Company for 2011 is as follows: $\begin{array}{lll}\text { Sales (5,000 units) } & & £ 100,000 \\\text { Variable expenses: } & & \\\text { Cost of goods sold } & £ 30,000\\\text { Selling ( } 10 \% \text { of sales) } & -10,000 & 40,000 \\\text { Contributi on margin } & & £ 60,000\\\text { Fixed expenses: }\\\text { Manufacturing overhead } & £ 24,000 & \\\text { Administrative } & -14,400 & \underline{38,400} \\\text { Net income } & & \underline{£ 21,600}\end{array}$


$\text { Selected data for } 2011 \text { concerning the operations of the company are as follows: }$

$\begin{array}{ll}\text { Beginning inventory } & -0 \text { - units } \\\text { Units produced } & 8,000 \text { units }\end{array}$

$\text { Manufacturing costs: }$
$\begin{array}{ll}\text { Direct labour } & \text { £3.00 per unit } \\\text { Direct materials } & 1.60 \text { per unit } \\\text { Variable overhead } & 1.40 \text { per unit }\end{array}$