Chapter 1.1, Problem 1WT

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Newman Corporation sells 1 product, it's waterproof hiking boots.

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What's the difference

Newman Corporation sells one product, its waterproof hiking boot. It began operations in the current year and had an ending inventory of 8,500 units. The company sold 20,000 units throughout the year. Fixed manufacturing overhead is $7 per unit, and total manufacturing cost per unit is $22.60 (including fixed manufacturing overhead costs). What is the difference in net income between absorption and variable costing?

If 11 more dinners were sold?

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