Q1. During the first month of operations ended June 30, 2018, Techcity Inc., has no beginning inventory and sales are estimated 20,000 units at $75 per unit. Also, sales can not be changed if more than 20,000 units are made. And next month, management of Techcity is evaluating whether to make 20,000 units(proposal 1) or 25,000 units(proposal 2). Costs and expenditures related to each proposal are shown below. Operating data for the month are summarized as follows; . unit price : $75 unit variable manuf acturing cost : $35 fixed manufacturing cost $400,000 unit variable selling and administrative cost $5 fixed selling and administrative cost $100,000 Instructions) 1. Make Absorption Costing Income Statement for Proposal 1 and Proposal 2 2. Make Variable Costing Income Statement for Proposal 1 and Proposal 2 3. Comment the following sentence "managers could misinterpret increases in income from operations due to changes in efficiencies" based on the answer from question 1 and question 2.

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing t…