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Analyzing income under absorption and variable costing

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Reference no: EM132685816

Problem - Analyzing income under Absorption and Variable Costing

Variable manufacturing costs are $11 per unit, and fixed manufacturing costs are $55,000. Sales are estimated to be 10,000 units.

Required -

a. How much would absorption costing income from operations differ between a plan to produce 10,000 units and a plan to produce 12,500 units?

b. How much would variable costing income from operations differ between the two production plans?

Reference no: EM132685816

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