Chapter 9 Handout #1 Assume Acme Company has the following information: Unit sales 100 Unit selling price $ 20 Beginning inventory 20 units Variable manufacturing cost $ 10 per unit Total fixed manufacturing cost $500 Denominator level 100 units Assume there are no variable or fixed nonmanufacturing costs Required: 1. Assuming unit production is 110 units, prepare an absorption costing income statement. 2. . Assuming unit production is 110 units, prepare a variable costing income statement. 3. Assuming unit production is 90 units, prepare an absorption costing income statement. 4. Assuming unit production is 90 units, prepare a variable costing income statement. 5. Compare absorption costing income and variable costing income under both production levels