Variable manufacturing costs are $22 per unit, and fixed manufacturing costs are $110,000. Sales are estimated to

Question:

Variable manufacturing costs are $22 per unit, and fixed manufacturing costs are $110,000. Sales are estimated to be 20,000 units.
a. How much would absorption costing income from operations differ between a plan to produce 20,000 units and a plan to produce 25,000 units?
b. How much would variable costing income from operations differ between the two production plans?