Question: Fixed manufacturing cost are P45 per unit and variable manufacturing cost are P75 per unit. Production was 70,000 units while sales were 50,000 units at

  1. Fixed manufacturing cost are P45 per unit and variable manufacturing cost are P75 per unit. Production was 70,000 units while sales were 50,000 units at P150 per unit.
  1. What will give a higher operating income, variable or absorption costing method?
  2. What caused the difference in net income (show the computation)?

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