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please help with all questions Chapter 5-In-Class Activity Use the following information to answer questions 1-3: Acme Company sells 900 units for $110 cach. Variable
please help with all questions
Chapter 5-In-Class Activity Use the following information to answer questions 1-3: Acme Company sells 900 units for $110 cach. Variable manufacturing costs are $75 per unit, fixed manufacturing expenses are $22,000. 1. Compute net profit using variable costing, assuming that Acme produces 1,000 units. 2. Compute net profit using absorption costing assuming that Acme produces 1,000 units. Hint: fixed manufacturing costs become product costs with absorption costing (i.e, only fixed costs associated with the units sold are included in the profit computation, the fixed costs for the units manufactured but not sold attach to ending inventory) 3. Compute net profit using absorption costing assuming that Acme produces 2,000 units. 4 Lifetime profit for variable and absorption costing is the same. WhyStep by Step Solution
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