Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units. If an amount is zero, enter "O" a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units? 141.75 X b. How much would variable costing operating income differ between the two production plans? 136.5 X
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units. If an amount is zero, enter "O" a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units? 141.75 X b. How much would variable costing operating income differ between the two production plans? 136.5 X
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 $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units.
If an amount is zero, enter "O"
a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units?
141.75 X
b. How much would variable costing operating income differ between the two production plans?
136.5 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff01c02d5-8665-4d9f-9670-f6f8cdaf9e66%2Fb9b2c3a8-4119-43a1-927b-a1812444dcd8%2F6hwgate.png&w=3840&q=75)
Transcribed Image Text:Analyzing Income under Absorption and Variable Costing
Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units.
If an amount is zero, enter "O"
a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units?
141.75 X
b. How much would variable costing operating income differ between the two production plans?
136.5 X
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