Variable costs are $70 per unit and fixed costs are $150,000. Sales are estimated to be 10,000

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Variable costs are $70 per unit and fixed costs are $150,000. Sales are estimated to be 10,000 units. How much would absorption costing operating income differ between a plan to produce 10,000 units and 12,000 units?

a. $150,000 greater for 12,000 units

b. $150,000 less for 12,000 units

c. $25,000 greater for 12,000 units

d. $25,000 less for 12,000 units

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Financial And Managerial Accounting

ISBN: 9781337902663

15th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William B. Tayler

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Question Posted: Feb 07, 2024 06:31 AM

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Variable costs are $70 per unit and fixed costs are $150,000. Sales are estimated to be 10,000

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c 2000 units 150000 12000 Answers a and b incorrectly compute the difference ...View the full answer

Financial And Managerial Accounting

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