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How much would absorption costing operating income differ

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Reference no: EM132763817

Problem - 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.

a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units?

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

Reference no: EM132763817

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