Question
The following is a company's financial information for units sold during its first month of operations: Sakes $60,000 Variable Manufacturing Costs $6,400 Variable SG&A $2,000
The following is a company's financial information for units sold during its first month of operations:
Sakes $60,000
Variable Manufacturing Costs $6,400
Variable SG&A $2,000
Fixed SG&A $1,800
Total Cost of Goods $7,600
Ending Merchandise Inventory (units) $2,000
What is the difference between absorption costing operating income and variable costing operating income if the company sells 6,000 units.
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
4th Edition
1119607515, 978-1119607519
