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Analyzing income under absorption and variable costing
Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units.
Problem A. How much would absorption costing income from operations differ between a plan to produce 10,000 units and a plan to produce 15,000 units?
Problem B. How much would variable costing income from operations differ between the two produc-tion plans?
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