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Question 1: Green Company sells its product for $10400 per unit. Variable costs per unit are: manufacturing, $5900; and selling and administrative, $130. Fixed costs are: $26400 manufacturing overhead, and $36400 selling and administrative. There was no beginning inventory at 1/1/18. Production was 24 units per year in 2018-2020. Sales were 24 units in 2018, 20 units in 2019, and 28 units in 2020. Income under absorption costing for 2019 is
Option 1: $24600.
Option 2: $29000.
Option 3: $31600.
Option 4: $53600.
Question 2: In income statements prepared under absorption costing and variable costing, where would you find the terms contribution margin and gross profit?
Option 1: In absorption-costing income statementIn variable-costing income statement
Option 2: In absorption-costing income statementIn both income statements
Option 3: In variable-costing income statement
Option 4: In absorption-costing income statement
Option 5: In both income statementsIn variable-costing income statement
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