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A company makes and sells pencils for $0.10 each. Production of pencils costs them $0.03 for each pencil: $0.02 of fixed manufacturing costs and $0.01
A company makes and sells pencils for $0.10 each. Production of pencils costs them $0.03 for each pencil: $0.02 of fixed manufacturing costs and $0.01 of variable manufacturing costs. The company normally produces 1,000,000 pencils for the year.
During the current year, they sell 750,000 pencils. How much fixed manufacturing cost will be on their Variable Costing Income Statement and Absorption Costing Income Statement?
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