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Question 8 5 pts Pep Enterprises manufactures coffee makers. Here are data regarding its first year of operations: Selling price, per unit $200 Variable
Question 8 5 pts Pep Enterprises manufactures coffee makers. Here are data regarding its first year of operations: Selling price, per unit $200 Variable manufacturing costs, per unit $90 Fixed manufacturing overhead costs, total $61,200 Variable selling and administrative expenses, per unit $12 Fixed selling and administrative expenses, total $13,600 Inventory, beginning of year None Inventory, end of year 1,400 units 2,000 units Units sold during year How much more (or less) operating income will Pep report if it uses absorption costing rather than variable costing? $30,800 less in operating income $25,200 less in operating income $25,200 more in operating income $30,800 more in operating income No difference in operating income
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