Chapter 23, Problem 2.1AA

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GENERAL ACCOUNTING 2

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What was the income using variable costing?

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Linden corp. has the following information

A company had an income of $72,000 using absorption costing for a given period. Beginning and ending inventories for that period were 10,000 units and 15,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate was $2.50 per unit, what was the income using variable costing?

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Please answer the following requirements on these financial accounting question