Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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General Accounting

In its first year of operations, MJK Manufacturers had the following costs
when it produced 100,000 and sold 80,000 units of its only product:
Manufacturing costs:
Fixed
Variable
$180,000
$160,000
Selling and administrative costs:
Fixed
Variable
$90,000
$40,000
How much lower would MJK's net income be if it used variable costing
instead of complete absorption costing?
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Transcribed Image Text:In its first year of operations, MJK Manufacturers had the following costs when it produced 100,000 and sold 80,000 units of its only product: Manufacturing costs: Fixed Variable $180,000 $160,000 Selling and administrative costs: Fixed Variable $90,000 $40,000 How much lower would MJK's net income be if it used variable costing instead of complete absorption costing?
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