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Abbey, Brady, and Cali Companies Three new companies (Abbey, Brady, and Cali) began operations on January 1 of the current year. Consider the following operating
Abbey, Brady, and Cali Companies Three new companies (Abbey, Brady, and Cali) began operations on January 1 of the current year. Consider the following operating costs that were incurred by these companies during the complete calendar year: Production in units Sales price per unit Fixed production costs Variable production costs Variable SG&A Fixed SG&A Abbey Company Brady Company Cali Company 10,000 10,000 10,000 $10 $10 $10 $10,000 $20,000 $30,000 $30,000 $20,000 $10,000 $1/unit $2/unit $3/unit $30,000 $20,000 $10,000 Refer to Abbey, Brady, and Cali Companies. Based on sales of 7,000 units, which company will report the greater income before income taxes if absorption costing is used? Select one: O a. Abbey Company O b. Brady Company O c. Cali Company d. All of the companies will report the same income. O
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