Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $85 per unit, and fixed manufacturing costs are $125,400. Sales are estimated to be 5,500 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 5,500 units and a plan to produce 6,600 units? X b. How much would variable costing operating income differ between the two production plans?
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $85 per unit, and fixed manufacturing costs are $125,400. Sales are estimated to be 5,500 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 5,500 units and a plan to produce 6,600 units? X b. How much would variable costing operating income differ between the two production plans?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4BE
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![Analyzing Income under Absorption and Variable Costing
Variable manufacturing costs are $85 per unit, and fixed manufacturing costs are $125,400. Sales are estimated to be 5,500 units.
If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar.
a. How much would absorption costing operating income differ between a plan to produce 5,500 units and a plan to produce 6,600 units?
b. How much would variable costing operating income differ between the two production plans?
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Transcribed Image Text:Analyzing Income under Absorption and Variable Costing
Variable manufacturing costs are $85 per unit, and fixed manufacturing costs are $125,400. Sales are estimated to be 5,500 units.
If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar.
a. How much would absorption costing operating income differ between a plan to produce 5,500 units and a plan to produce 6,600 units?
b. How much would variable costing operating income differ between the two production plans?
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