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i do not understand the variable and absorption cost can you explain? Due Tuesday Bianca Bicycles Company manufactures mountain bikes with a standard variable cost

i do not understand the variable and absorption cost can you explain?

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Due Tuesday Bianca Bicycles Company manufactures mountain bikes with a standard variable cost of $200. The icycles sell for $350 each. Budgeted fixed manufacturing overhead for the most recent year was $2,200,000. Planned and actual production for the year were the same. Required: a. Under each of the following conditions states weather income is greater (higher) under variable or absorption costing, and b. state the amount of the difference reported in net income under the two methods. Treat each case independently from the others. 1) Production 20,000 units Sales 23,000 units 2) Production 10,000 units Sales 10,000 units 3) Production 11,000 units Sales 9,000 units 2)

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