Question: How would I go about solving this problem? I am having trouble It out Cassandra, Inc. manufactures and sells one product and uses standard costing

How would I go about solving this problem? I am having trouble It out

How would I go about solving this problem? I am having trouble

Cassandra, Inc. manufactures and sells one product and uses standard costing as well asjust-in-time inventory control methods. Consequently, Cassandra never has any ending inventories at the end of any accounting period. Planned and actual activity was well within the relevant range. The rm provides the following information relating to itsjust-completed 2024 operations: Fixed costs Manufacturing Master budget $412,000 Production volume variance $36,000 F Budget variance $18,000 U Selling and administrative $220,000 actual costs incurred Operating income $120,000 absorption costing basis Required: Assuming unit sales price, unit variable costs and total fixed costs remain unchanged from actual 2024 amounts, what would be Cassandra's operating income if unit sales in 2025 fell to only 90% of the number of units sold in 2024? $ |:|

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