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Jin Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced, and 1,750 units

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Jin Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced, and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $20.00 per unit Variable marketing costs $3.00 per unit Fixed manufacturing costs $7.00 per unit Administrative expenses, all fixed $15.00 per unit Requirements 1. Jin Pillows uses absorption costing and variable costing to calculate profits. Which method leads to higher profits? (1 mark) 2. Use formula approach to calculate the differences in profit between absorption costing and variable costing (1 mark) 3. Jin Pillows uses absorption profit to determine the bonus for the manager. Please identify the potential undesirable behaviour of the manager. Please also identify two ways of addressing the undesirable behavior

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