Question: Logan Companys fixed overhead costs are $3 per unit, and its variable overhead costs are $8 per unit. In the first month of operations, 50,000

Logan Company’s fixed overhead costs are $3 per unit, and its variable overhead costs are $8 per unit. In the first month of operations, 50,000 units are produced, and 47,000 units are sold. Write a short memo to the chief financial officer explaining which costing approach will produce the higher income and what the difference will be.

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