Ridgeline Plastics manufactures high-strengthplastics for aerospace components. In 2021, thecompany produced 6,000 tons of plastic but sold3,800 tons. In 2022, it produced the same amountbut sold 7,500 tons (selling all its inventory). Theselling price per ton was $1,950, variablemanufacturing costs per ton were $450, and variableselling expenses were $550 per ton. Fixedmanufacturing costs were $4,200,000, and fixedadministrative expenses were $700,000.Compute net income under variable costing for2021.

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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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