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Tick-Tock-Watch is preparing to launch their new luxury brand. They commissioned you to prepare two income statements, one using the variable method of costing and
Tick-Tock-Watch is preparing to launch their new luxury brand. They commissioned you to prepare two income statements, one using the variable method of costing and one using the absorption method. What is the difference in the operating income on year 2 in the different methods if the operating income using the absorption method is $1,255,470.97? Budget variable operating expense $25.00 per unit Budget fixed operating expense $158,000.00 Budget variable manufacturing cost $1,000.00 per unit Budget fixed manufacturing cost $35,000.00 Budget production 310.00 units Budgeted selling price $5,555.00 Year 1 Year 2 Beginning inventory - 5 Actual production 307 310 Sales volume 302 320
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