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Absorption Costing vs. Variable Costing : A company produces a single product and uses both absorption costing and variable costing. The company sells 5,000 units
Absorption Costing vs. Variable Costing: A company produces a single product and uses both absorption costing and variable costing. The company sells 5,000 units at $40 each. The variable costs per unit are $20, and fixed manufacturing overhead costs per unit are $5. Calculate the difference in operating income between absorption costing and variable costing.
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