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Garcia & Lewis Industries makes artificial Christmas trees. The unit costs for producing a tree are: The company also incurs $1 per tree in variable
Garcia \& Lewis Industries makes artificial Christmas trees. The unit costs for producing a tree are: The company also incurs $1 per tree in variable selling and administrative costs and $3,100 in fixed marketing costs. At the beginning of the year, the company had 900 trees in the beginning Finished Goods Inventory. The company produced 2.230 trees during the year. Sales totaled 2,000 trees at a price of $103 per tree. (a) Based on absorption costing, what was the company's operating income for the year? Company's operating income (b) Based on variable costing, what was the company's operating income for the year? Company's operating income (b) Based on variable costing, what was the company's operating income for the year? Company's operating income (c) Assume that in the following year the company produced 2,230 trees and sold 2,800. Based on absorption costing, what was th operating income for that year? Based on variable costing, what was the operating income for that year
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