Cost Management
Cost Management
8th Edition
ISBN: 9781259917028
Author: BLOCHER, Edward
Publisher: Mcgraw-hill Education,
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Chapter 18, Problem 17BE
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Abbott Manufacturing produces a single product. Variable production costs are $18.2 per unit, and variable selling and administrative expenses are $4.5 per unit. Fixed manufacturing overhead totals $72,000, and fixed selling and administration expenses total $48,000. Assuming a beginning inventory of zero, production of 7,500 units, and sales of 5,800 units, the dollar value of the ending inventory under variable costing would be_.
Can you explain the process for solving this financial accounting question accurately?
Altair Industries has variable costs equal to 40% of sales. The company is considering a proposal that will increase sales by $45,000 and total fixed costs by $22,500. By what amount will net income increase?
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