Chapter 6, Problem 6.13E

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Carry Manufacturing Inc. had a variable costing operating income of $95,200 in 2018. Ending inventory decreased during 2018 from 50,000 units to 47,000 units. During both 2017 and 2018, fixed manufacturing overhead was $900,000, and 120,000 units were produced. Determine the absorption costing operating income for 2018.

If revenue = $135 and variable cost revenue, then contribution margin = 45% of = $79.25. a. True. b. False.

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