Comparison of Full- Absorption and Variable Costing on Income Statements: Refer to exercise 9-9. Assume the selling
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Comparison of Full- Absorption and Variable Costing on Income Statements: Refer to exercise 9-9. Assume the selling price of pumps is $20 each.
Required:
a. Present the income statement using variable costing.
b. Present the income statement using full-absorption costing.
c. Explain the difference in the operating profits.
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