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A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 Variable costing income$ 79,000$ 112,000$

A manufacturer reports the following information below for its first three years in operation.

Year 1Year 2Year 3Variable costing income$ 79,000$ 112,000$ 118,000Beginning finished goods inventory (units)0830515Ending finished goods inventory (units)8305150Fixed overhead per unit$ 7.00$ 7.00$ 7.00

Income for year 3 using absorption costing is:

Select one:

a. $112,000.

b. $119,210.

c. $109,795.

d. $114,395.

e. $118,000.

Carver Packing Company reports total contribution margin of $95,400 and income of $21,200 for the current month. In the next month, the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are:

Select one:

a. 0.22 and 8%

b. 4.5 and 36%

c. 4.0 and 32%

d. 4.5 and 8%

e. 0.22 and 4.1%

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