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Swell Company reports the following annual cost data for its single product. Normal production level 75,000 units Direct materials $ 1.25 per unit Direct labor
Swell Company reports the following annual cost data for its single product.
Normal production level 75,000 units
Direct materials $ 1.25 per unit
Direct labor $ 2.50 per unit
Variable overhead $ 3.75 per unit
Fixed overhead $ 300,000 in total
This product is normally sold for $25 per unit. If Swell increases its production to 200,000 units, while sales remain at the current 75,000-unit level, by how much would the company's income increase or decrease under variable costing?
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