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Donna and Sandra are evaluating their company's performance using different capacity levels, each one trying to outperform the other. Donna uses the theoretical level
Donna and Sandra are evaluating their company's performance using different capacity levels, each one trying to outperform the other. Donna uses the theoretical level of 3,000 units, as she has very high expectations for production output, while Sandra uses a more moderate practical capacity level of 2,400 units, trying to keep things more realistic. The following information is available. Budgeted fixed-MOH cost $924,000 Budgeted variable manufacturing costs $370 per unit If actual production is 2,360 units with 2,100 units sold, how much COGS will Donna's income statement show? Sandra's? Donna Adjusted COGS $ Sandra $ Whose income statement will show the higher gross margin? scenario will show the higher gross margin.
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