Solution-Compute the difference in net operating income

Compute the difference in net operating income

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Reference no: EM133075152

Question - Vacation Corporation produces a single product. Data concerning the company's first year of operation appear below:

Units produced 10,000

Units sold 9,000

Selling price per unit P60

DM P15

DL P5

Variable OH P2

Variable selling and administrative P4

Fixed OH P200,000

Fixed selling and administrative P70,000

Required - Compute the difference in net operating income between absorption costing and variable costing for the year.

If the company produces 12,000 units and sells 13,000 units in the second year, how much higher or lower will the variable operating income be compared to the absorption operating income?

Reference no: EM133075152

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Compute the difference in net operating income

Reference no: EM133075152

Reference no: EM133075152

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