1) Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations:     Year 1 Year 2 Units (spice racks) produced   40,000   40,000 Units (spice racks) sold   37,000   41,000 Absorption costing net operating income $ 44,000 $ 52,000 Variable costing net operating income $ 38,000   ???  Pungent's selling price and unit variable cost and total fixed cost were the same for both years. What is Pungent's variable costing net operating income for Year 2?   A $50,000   B $48,000   C $56,000   D $54,000

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A:

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Q: [The following information applies to the questions displayed below.] Astro Company sold 22,500…

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