(Absorption vs. variable costing) The MAZZILLI Juicer Company uses variable costing. The following data relate to the company’s first year of operation when it produced 50,000 units and sold 46,000 units.

How much higher (or lower) would the company’s first-year net income have been if absorption costing had been used rather than variable costing? Show computations.LO1.

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Variable costs per unit Direct material $50 Direct labor 30 Variable overhead 14 Variable selling costs 12 Fixed costs Selling and administrative $750,000 Manufacturing 500,000