Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Analyzing Income under Absorption and Variable Costing
Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are
estimated to be 7,800 units.
If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your
final answers to the nearest dollar.
a. How much would absorption costing operating income differ between a plan to produce 7,800 units
and a plan to produce 9,900 units?
b. How much would variable costing operating income differ between the two production plans?
$
0
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