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Variable CostingProduction Exceeds Sales Fixed manufacturing costs are $42 per unit, and variable manufacturing costs are $126 per unit. Production was 120,000 units, while sales
Variable CostingProduction Exceeds Sales
Fixed manufacturing costs are $42 per unit, and variable manufacturing costs are $126 per unit. Production was 120,000 units, while sales were 114,000 units.
a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations.
b. Determine the difference in variable costing and absorption costing income from operations. $
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