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Ch. 6 Problem Part 3/3 Tamil Company manufactures and sells one product. The following costs were incurred during the company' s rst year of operations.

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Ch. 6 Problem Part 3/3 Tamil Company manufactures and sells one product. The following costs were incurred during the company' s rst year of operations. Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative R Fixed costs per year: Fixed manufacturing overhead $30,000 Fixed selling and administrative expenses $70,000 During the year, the company produced 8,000 units and sold 6,000 units. The selling price of the company's product is $87 per unit. Answer the following questions: ere, including calculations or spreadsheet data, for partial .j Show your work h credit (optional). difference in net operating income between absorption and variable costing in total for both years? (3 point) A segmented contribution format income statement for the company's most recent year is given below: ' Ofce Total Company South North Sales $750,000 100% $150,000 100% $600,000 Variable expenses 405,000 54% 45,000 30% 360,000 Contribution , 345,000 46% 105,000 70% 240,000 margm l Traceabemed 168,000 22.40% 78,000 52% 90,000 expenses Ofce segment 177,000 23.60% $27 00 M _45_0,M _ _.__r_ margin Common xed expenses not @5000 traceable to ofces Net operating [ Income By how much would the company's net operating income increase if it increased in Year 2, the company produces 8,000 units and sells 10,000. What would'be the - Traceable xed expenses 168,000 22.40% 78.000 52% germ 1529 Ofce segment . 171.090 23.60% _$_27..000 18% 5 150.000 25% margin Common fixed expenses not ,J,L,Q _Q 15% traceable to offices Net operating . $751,901) L0% income By how much would the company's not operating income increase if it increased its sales by $500,000 per year? (3 points)

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