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Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $64,000; variable selling and administrative costs per unit, $3; and fixed selling and administrative costs, $209,000. The company sells its units for $50 each.
Additional data follow:
Planned production in units 10,000Actual production in units 10,000Number of units sold 7,500
There were no variances.
Problem 1: The income (loss) under variable costing is
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