Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $72 per unit, and fixed manufacturing costs are $137,600. Sales are estimated to be 7,600 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 7,600 units and a plan to produce 8,600 units? $fill in the blank 1 b. How much would variable costing income from operations differ between the two production plans? $fill in the blank 2
Analyzing Income under Absorption and Variable
Variable manufacturing costs are $72 per unit, and fixed manufacturing costs are $137,600. Sales are estimated to be 7,600 units.
If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar.
a. How much would absorption costing income from operations differ between a plan to produce 7,600 units and a plan to produce 8,600 units?
$fill in the blank 1
b. How much would variable costing income from operations differ between the two production plans?
$fill in the blank 2
Absorption costing includes all expenses connected with the manufacture of a product, whereas variable costing includes only the variable costs immediately incurred in production and none of the fixed costs.
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