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Levine Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years the company malntained the same cost

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Levine Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years the company malntained the same cost structure to manufacture its products. Units Produced Units Sold Year Production and Sales 2818 2819 Cost Data Direct materials Direct labor Manufacturing overhead - variable Manufacturing overhead - fixecd Variable selling and administrative expenses Fixed selling and administrative expenses 4,888 6,888 4,888 4,8e8 38 per unit 48 per unit 24 per unit $216,80e 18 per unit sold $128,80e (Assume that selling and administrative expenses are associated with goods sold.) Levine sells its products for $216 per unlt. Required a. Prepare Income statements based on absorption costing for 2018 and 2019 b. SInce Levine sold the same number of units In 2018 and 2019, why did net Income Increase In 2019? d. Determine the costs of ending Inventory for 2019. e. Prepare Income statements based on variable costing for 2018 and 2019

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