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and Show Me How Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $74 per unit, and fixed manufacturing costs are $76,800. Sales
and Show Me How Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $74 per unit, and fixed manufacturing costs are $76,800. Sales are estimated to be 4,200 units. If an amount is zero, enter "O". Do not round interim calculations. Round final answer to nearest whole dollar a. How much would absorption costing income from operations differ between a plan to produce 4,200 units and a plan to produce 6,400 units? 26,400 b. How much would variable costing income from operations differ between the two production plans? 76,800 X Check My Work a. Remember that under variable costing, regardless of whether 4,200 units or 6,400 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fxed manufacturing costs are treated as a period expense. Therefore the change in units times in income between the two costing methods the per unit b. Remember that since all fixed manufacturing costs are treated as period expenses under variable between the two plans. costing, there are no differences in income
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