want to answer of this General accounting question In 2023, Highland Manufacturing's income underabsorption costing was $24,000 higher than its incomeunder variable costing. During the year, the companyproduced 30,000 units. If total variable productioncosts were $120,000 and fixed manufacturingoverhead was $60,000, how many units did thecompany sell in 2023?

Step 1: Define Absorption vs. Variable Costing DifferencesThe difference in net income between…

Answered: In 2023, Highland Manufacturing's…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....

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Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year is as follows:Required:1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c)contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars.2. How many units must be sold to earn operating income of $296,400?3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected.4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars.5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)6. Compute the new operating income if sales are 10% higher than expected.

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