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A manufacturer produced 20,000 units during the month. During the same month, sales were 27,000 units. Costs for the month included: Variable Fixed Unit manufacturing
A manufacturer produced 20,000 units during the month. During the same month, sales were 27,000 units. Costs for the month included:
Variable | Fixed | |
Unit manufacturing costs of the period | $12.00 | $6.00 |
Unit operating expenses of the period | 4.00 | 1.50 |
Income from operations under absorption costing will be __________________ than income from operations under variable costing?
$42,000 less
$42,000 more
$52,500 more
$52,500 less
An explanation for it please, thank you
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