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Acme Manufacturing produces a single product it sells at a price of $30 per unit. The company's variable costing operating income for the month of
Acme Manufacturing produces a single product it sells at a price of $30 per unit. The company's variable costing operating income for the month of February was $140,950 and its total fixed costs, including fixed manufacturing and fixed non-manufacturing costs, were $179,050. The only variable selling and administrative expenses the company incurs are sales commissions of $4 per unit. If Acme produced 43,000 units and sold 40,000 units in February, then what is the value of the company's ending inventory on February 28 under variable costing? (Assume there were no units in beginning inventory for the month of February.) O $54,000 $64.050 $66,000 $74,250 None of the above
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