Question

Q6 A company produced 10,000 units in March 2018 and sold 8,500 of them at $40...

Q6 A company produced 10,000 units in March 2018 and sold 8,500 of them at $40 each. The variable manufacturing costs per unit was $16 and the fixed cost per unit was $3

Variable selling and administrative expenses were $5 and the fixed selling and administrative expenses were $45,000.   



1. Using absorption costing what would be the income from operations for March? $_____________________________________________

1. Using variable costing what would be the income from operations for March?

$_______________________________________________

C. Explain why the income from operations would be different under absorption costing versus variable costing?

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