kpp group

Variable and Absorption Costing Summarized data for 2016 (the first year of operations) for Trenton Procucts, Inc, are as follows: a. Prepare an income statement based on full abscrption costing, number, when applicable. b. Prepare an income statement based on variable costing. number, when applicable. c. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $42 per unit. Which incorne statement presents the most relevant data? Determine the apparent profit or loss on the special order based solely on these daca. Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number. 1 d. If the ending inventory is destroyed by fire, which costing approach would you use as a basis for filing an insurance claim for the fire loss? Why? Select the most appropriate statement. QAbscrption costing apprcach because the cost should include a reasonable portion of fixed manufacturing costs. Ovariable costing approach because the cost should include a reasonable porticn of fixed manufacturing costs