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- ZB Toys started 2017 with no inventories. During the year, its expected and actual production was 30,000 units, of which it sold 24,000 units
- ZB Toys started 2017 with no inventories. During the year, its expected and actual production was 30,000 units, of which it sold 24,000 units at $50 each. Cost data for the year is as follows:
Calculate ZB Toyss operating income under (a) variable costing and (b) absorption costing. Explain why operating income differs under the two approaches.
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