3. Operating Income:

Calculate the difference between the operating income of the above two statements and explain where it is coming from.

Kent Company manufactures and sells one product. Given below is information that pertains to its first year of operations. During its first year of operations, it produced 59,000 units and sold 53,000 units. The selling price of the company's product is AED 65.00 per unit. (a) Calculation of unit cost under variable Costing (b) Income Statement (Under Variable Costing) Direct Material per Unit 9 Direct Labor per Unit Fixed manufacturing overhead Unit Product Cost under Absorption Costing 26.72 b) f Income Statement ( absorption costing) Sales (53,00065) Cost of Goods Sold (53,00026.72) Gross Margin Less fixed selling and administartive cost Net income 3,445,000 1,416,160 2,028,840 53,000 1,975,840