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Entel Corporation creates an accounting computer program. This year, Entel Corporation produced 20,000 units of its program and sold 22,000 units. Each unit sells for
Entel Corporation creates an accounting computer program. This year, Entel Corporation produced 20,000 units of its program and sold 22,000 units. Each unit sells for $250. Selected operational and financial data are as follows:
Required:
A. Calculate Entel's net operating income, using absorption costing.
B. Will operating income be higher or lower if calculated with variable costing?
C. By how much?
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