Question: Variable costs are $70 per unit and fixed costs are $150,000. Sales are estimated to be 10,000 units. How much would absorption costing operating income

Variable costs are $70 per unit and fixed costs are $150,000. Sales are estimated to be 10,000 units. How much would absorption costing operating income differ between a plan to produce 10,000 units and 12,000 units?

a. $150,000 greater for 12,000 units

b. $150,000 less for 12,000 units

c. $25,000 greater for 12,000 units

d. $25,000 less for 12,000 units

Step by Step Solution

★★★★★

3.48 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

c 2000 units 150000 12000 Answers a and b incorrectly compute the difference ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Managerial Accounting Questions!

Variable manufacturing costs are $90 per unit, and fixed manufacturing costs are $270,000. Sales are estimated to be 30,000 units. a. How much would absorption costing operating income differ between...

Variable manufacturing costs are $22 per unit, and fixed manufacturing costs are $110,000. Sales are estimated to be 20,000 units. a. How much would absorption costing income from operations differ...

Variable manufacturing costs are $35 per unit, and fixed manufacturing costs are $42,000. Sales are estimated to be 3,000 units. a. How much would absorption costing income from operations differ...

answer the mark one in red please and thank you Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $70 per unit, and fixed manufacturing costs are $111,600. Sales...

Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $70 per unit, and fixed manufacturing costs are $67,200. Sales are estimated to be 4,800 units. If an amount is...

answer all please and thank you Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $70 per unit, and fixed manufacturing costs are $111,600. Sales are estimated...

1A- Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $112 per unit, and fixed manufacturing costs are $83,300. Sales are estimated to be 3,400 units. If an...

Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $97 per unit, and fixed manufacturing costs are $110,600. Sales are estimated to be 5,600 units. If an amount...

Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $78 per unit, and fixed manufacturing costs are $63,800,5 Sales are estimated to te 4,400 units. If an amount...

Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $88 per unit, and fixed manufacturing costs are $62,400. Sales are estimated to be 6,400 units. If an amount is...

Does accounting for a net operating loss (NOL) carry back require less judgment than accounting for the net operating loss ( NOL) carry forward? Explain.

Nora jogs 4(1)/(4) miles on Monday. She jogs 1(1)/(2) miles fewer on Tuesday. Write and evaluate an addition expression to find how many miles Nora jogs on Tuesday.

Martinaz Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centars have been attracting business avay from city...

2. The main message you will seek to communicate An advertising campaign consists of a series of advertise- ments placed in media over time. While ads may be placed in different media, all will have...

The fiscal years for several well-known companies are as follows: What general characteristic shared by these companies explains why they do not have fiscal years ending December31? Fiscal Year...

The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, retained...

Tyrell Company issued callable bonds with a par value of $10,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $10,500) to bondholders to retire the bonds. On...

(t) the tobal amouth pad ever the life of the laan $ Ca the tucal intereat peistover the the of the isan

Forecasting and Estimating Share Value Using the DCF Model Following are the income statement and balance sheet for Intel Corporation. INTEL CORPORATION Consolidated Statements of Income Year Ended...