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Incorrect Question 6 0/1 pts King Kong has launched a banana-flavored ice cream company. Their sales and production for the past four years is below:
Incorrect Question 6 0/1 pts King Kong has launched a banana-flavored ice cream company. Their sales and production for the past four years is below: Year 1 Year 2 Year 3 Year 4 Production in units. 5,000 6,000 5,000 5,000 Sales in units. 4,000 5,000 5,000 7,000 Selling price per unit, variable cost per unit, and total fixed cost are the same each year. There were no beginning inventories in Year 1. Which of the following statements is correct about net operating income (NOI)? Under absorption costing, NOI for Year 3 and Year 4 would be the same Under variable costing, NOI for Year 3 and Year 4 would be the same Absorption costing NOI would exceed variable costing NOI in Year 1 Under absorption costing, NOI for Year 2 and Year 3 would be the same Variable costing NOI would exceed absorption costing NOI in Year 2
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