Refer to the information given in exercise 9-20

. Assume it is now the third quarter of the same year, and the volumes in the third quarter are as follows:

Variable costs and selling price per unit remain the same in the third quarter as in the first quarter, as do quarterly fixed costs.
Using the algebraic method, show the difference in operating profits between variable costing and full-absorption costing. (Assume a FIFO inventory flow.

Transcribed Image Text:

Sales volume 110,000 units Production volume 95,000 units