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A company produces 10,000 units, incurring variable production costs of $5 per unit and fixed production costs of $20,000. Selling price is $15 per unit.

A company produces 10,000 units, incurring variable production costs of $5 per unit and fixed production costs of $20,000. Selling price is $15 per unit. Prepare income statements under variable and absorption costing.

Cost Component

Variable Costing

Absorption Costing

Revenue



Variable Production



Fixed Production



Total Costs



Net Income



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