Dragon Company manufactures kites and sells them for $30 per unit. Dragon's variablemanufacturing costs are $14 per unit and its total fixed manufacturing overhead costs are $105,000per year. During its first year of operations, Dragon produced 8,750 units and its operating incomewas $26,600 using absorption costing and $14,000 using variable costing. How many units didDragon sell in its first year of operations?O 7,700 unitsO 8,050 unitsO 8,400 units8,750 unitsO None of the above

Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Answered: Dragon Company manufactures kites and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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