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Problem P6.8A Dilithium Bafteries is a division of Enterprise Corporation. The division manufactures and sells a long-life battery used in a wide variety of applications.

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Problem P6.8A Dilithium Bafteries is a division of Enterprise Corporation. The division manufactures and sells a long-life battery used in a wide variety of applications. During the coming year it expects to sell 50,000 units for $25,00 per unit. Nyota Uthura is the division manager. She is considering producing cither $0,000 or 80,000 units during the period. Other information is presented in the schedule. Instructions: (a) Prepare an absorption costing income statement, with one column showing the results if 50,000 units are produced and one column showing the results if 80,000 units are produced. Di ITHI RATTERIES DIVISIO ACCT212-Mod03-Ch06 Classwork 06 - Page 8 of 10 (b) Prepare a variable costing income statement, with one column showing the results if 50,000 units are produced and one column showing the results if 80,000 units ane produced. (c) Reconcile the difference in net incomes under the two approaches and explain what accounts for this difference. ACCT212-Mod03-Ch06 Classwork 06 - Page 90 (d) Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager's performance

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