In the previous year, a company’s total fixed

by | Mar 18, 2020 | Uncategorized

  

In the previous year, a company’s total fixed manufacturing overhead costs were $13,600 and its total variable production costs were $15,000. There were no units in beginning inventory, 10,000 units were produced and 9,200 units were sold. How much lower is the operating income for the previous year using direct (variable) costing versus absorption costing?

  

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