O Cathy Company manufactures a single type of calculator. In its first year of operations, Cathy...
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O Cathy Company manufactures a single type of calculator. In its first year of operations, Cathy produced and sold 780,000 calculators. What would have happened to operating income in this first year under the following costing methods if Cathy had produced 20,000 more calculators? (Assume that Cathy has both variable and fixed manufacturing overhead costs). Variable Costing Absorption Costing Decrease Decrease Variable Costing Absorption Costing Decrease Increase Variable Costing Absorption Costing Decrease Increase Variable Costing Absorption Costing Increase Increase Variable Costing Absorption Costing No Effect Increase O K O Cathy Company manufactures a single type of calculator. In its first year of operations, Cathy produced and sold 780,000 calculators. What would have happened to operating income in this first year under the following costing methods if Cathy had produced 20,000 more calculators? (Assume that Cathy has both variable and fixed manufacturing overhead costs). Variable Costing Absorption Costing Decrease Decrease Variable Costing Absorption Costing Decrease Increase Variable Costing Absorption Costing Decrease Increase Variable Costing Absorption Costing Increase Increase Variable Costing Absorption Costing No Effect Increase O K
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Correct answer B Under the variable costing fixed manufacturing cost is t... View the full answer
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
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