Miller Company produces a single product. The company had the following results for its first two years of operation: year 1 year 2 sales 1,200,000 1,200,000 cogs 800,000 680,000 gross margin 400,000 520,000 selling and admin expenses 300,000 300,000 Net Operating Income 100,000 220,000 n Year 1, the company produced and sold 40,000 units of its only product; in Year 2, the company again sold 40,000 units, but increased production
Miller Company produces a single product. The company had the following results for its first two years of operation:
| year 1 | year 2 | |
| sales | 1,200,000 | 1,200,000 |
| cogs | 800,000 | 680,000 |
| gross margin | 400,000 | 520,000 |
| selling and admin expenses | 300,000 | 300,000 |
| Net Operating Income | 100,000 | 220,000 |
n Year 1, the company produced and sold 40,000 units of its only product; in Year 2, the company again sold 40,000 units, but increased production to 50,000 units. The company's variable production cost is P5 per unit and its fixed
a.Compute the unit product cost for year 1and year 2 under absorption costing.
b.Compute the unit product cost for year 1 and year 2 under variable costing.
c.What is the net income under variable costing?
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