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Question 1: Jones and Sons runs two divisions. Sales for next year for the Jones 1 Division are 120,000 units. John Jones, the manager of the Jones 1 Division, needs to improve how well the Division is operating. Next year the plans are to produce either 120,000 units or 140,000 units. The Jones 1 Division will have higher net income, if John decides to
A. produce 140,000 units if income is measured under absorption costing.
B. produce 140,000 units if income is measured under variable costing.
C. produce 120,000 units if income is measured under absorption costing.
D. produce 120,000 units if income is measured under variable costing.
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