Question: BE 21-4 Analyzing income under absorption and variable costing. Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated

BE 21-4 Analyzing income under absorption and variable costing.

Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units.

  1. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units?
  2. How much would variable operating income differ between the two production plans?

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