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QUESTION
Variable costs are $80 per unit, and fixed costs are $40,000. Sales are estimated to be 4,000 units.
Variable costs are $80 per unit, and fixed costs are $40,000. Sales are estimated to be 4,000 units. (a) How much would absorption costing income from operations differ between a plan to produce 4,000 units and a plan to produce 5,000 units? (b) How much would variable costing income from operations differ between the two production plans?
