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Imagine you're a plane manufacturer, and demand for your planes has been drying up. Your facilities have capacity to make 50 planes, but demand for
Imagine you're a plane manufacturer, and demand for your planes has been drying up. Your facilities have capacity to make 50 planes, but demand for the coming period is only 20 planes. Variable cost per plane $100,000 Sales price $300,000 per plane Fixed MOH $2,000,000 How many planes should you produce to maximize your company's absorption costing net income? What would be the company's absorption costing net income
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