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In its first year of operations, MJK Manufacturers had the following costs when it produced 100,000 and sold 80,000 units of its only product: Manufacturing costs: Fixed Variable $180,000 $160,000 Selling and administrative costs: Fixed Variable $90,000 $40,000 How much lower would MJK's net income be if it used variable costing instead of complete absorption costing?

In its first year of operations, MJK Manufacturers had the following costs when it produced 100,000 and sold 80,000 units of its only product: Manufacturing costs: Fixed Variable $180,000 $160,000 Selling and administrative costs: Fixed Variable $90,000 $40,000 How much lower would MJK's net income be if it used variable costing instead of complete absorption costing?

FINANCIAL ACCOUNTING
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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In its first year of operations, MJK Manufacturers had the following costs when it produced 100,000 and sold 80,000 units of its only product: Manufacturing costs: Fixed Variable $180,000 $160,000 Selling and administrative costs: Fixed Variable $90,000 $40,000 How much lower would MJK's net income be if it used variable costing instead of complete absorption costing?
Transcribed Image Text:In its first year of operations, MJK Manufacturers had the following costs when it produced 100,000 and sold 80,000 units of its only product: Manufacturing costs: Fixed Variable $180,000 $160,000 Selling and administrative costs: Fixed Variable $90,000 $40,000 How much lower would MJK's net income be if it used variable costing instead of complete absorption costing?
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