Question: i need help answering these question please repair and 2 would variable or absorption are profitable? costing be more useful to Google in analyzing whether

 i need help answering these question please repair and 2 would

i need help answering these question please

repair and 2 would variable or absorption are profitable? costing be more useful to Google in analyzing whether support services PTN 19-3 FDP Company produces a variety of home security products. Gary Price, the company's pres- ident, is concerned with the fourth-quarter market demand for the company's products. Unless something CHAL is done in the last two months of the year, the company is likely to miss its earnings expectation of Wal Street analysts. Price still remembers when FDP's earnings were below analysts' expectation by two cents c1 share three years ago, and the company's share price fell 19% the day earnings were announced. In a recent meeting. Price told his top management that something must be done quickly. One proposal by the marketing vice president was to give a deep discount to the company's major customers to increase the company's sales in the fourth quarter. The company controller pointed out that while the discount could increase sales, it may not help the bottom line; to the contrary, it could lower income. The controller said. "Since we have enough storage capacity, we might simply increase our production in the fourth quarter to increase our reported profit." she will be ae does not want 1. Gary Price is not sure how the increase in production without a corresponding increase in sales could help boost the company's income. Explain to Price how reported income varies with respect to pro- duction level. 2. Is there an ethical concern in this situation? If so, which parties are affected? Explain

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