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A company manufactures 50,000 units of a product and sells 40,000 units. Total manufacturing cost per unit is $50 (variable manufacturing cost $10, fixed manufacturing

A company manufactures 50,000 units of a product and sells 40,000 units. Total manufacturing cost per unit is $50 (variable manufacturing cost $10, fixed manufacturing cost $40). Assuming no beginning inventory, what is the effect on net income if absorption costing is used instead of variable costing?

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