Question 5 (16 points) Saved Page 7: 16 Marks (Suggested Time 29 minutes): Corporal Company produces sporting equipment. In 2021, the first year of operations, Corporal produced V 20,000 units and sold 15,000 units. In 2022, the production and sales results were exactly reversed - produced 15,000 and sold 20,000 units. In each year, selling price was $120, variable manufacturing costs were $50 per unit, variable selling expenses were $5 per unit sold, fixed manufacturing costs were Page 8: $525,000, and fixed administrative expenses were $170,000. 8 Instructions Calculate net income under variable costing for each year. (5 Marks) a) b ) Calculate net income under absorption costing for each year. (6 Marks) Reconcile the differences each year in income from operations under the two costing approaches. (4 Page 9: C) Marks) d) If in 2023 the company's plans are more stabilized and 20,000 units are both produced and sold, what 9 will the dollar amount of the difference between variable and absorption costing be? (1 Mark) -- BIUABE ! + . . . Paragraph Page 10: b) 2021 10 Sales (15000*120) =1800000 Page 11: less: COGS (15000*50) = 750000 11 gross profit =1050000 less: Variable selling expenses (15000*) = O m X P w N N a 9.C Cloudy 10:28 AM 2021-10-23 DII F2 F3 F4 FS F6 PrtScn F7 F8 Home F9 End F10 PgUp PgOn LA % F12 3 & 5 6