16)A company has the following expenses:

Sales $250,000.00

Accountants Salary $50,000.00

Direct Materials $5,000.00

Direct Labor $10,000.00

Bookkeepers Hourly Rate (100 hrs) $10/hr

UPS Shipment Expense $200.00

a) Using the Variable Costing method, answer the questions below based on the information above:

1)What is the companys Manufacturing Margin?

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2)What is the contribution margin?

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3)What is the companys income from operations?

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b)Using the Absorption Costing method, answer the questions below based on the information above:

1)What is the companys gross profit?

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2)What is the companys income from operations?

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17) What is the major difference between absorption costing and variable costing?

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