Question: The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the company's product is $46

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the company's product is $46 per unit. Year 1 Year 2 Production (units) 55,000 55,000 Sale (units) 43,750 66,250 25 For external reporting purpose, the company has to use GAAP-consistent absorption accounting. The absorption costing income for Year 1 is: A higher than super-variable costing income by $208,125 B. lower than super-variable costing income by $208,125 C. higher than super-variable costing income by $106,875 D. lower than super-variable costing income by $106,875 E. None of the above The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the company's product is $46 per unit. Year 1 Year 2 Production (units) 55,000 55,000 Sale (units) 43,750 66,250 25 For external reporting purpose, the company has to use GAAP-consistent absorption accounting. The absorption costing income for Year 1 is: A higher than super-variable costing income by $208,125 B. lower than super-variable costing income by $208,125 C. higher than super-variable costing income by $106,875 D. lower than super-variable costing income by $106,875 E. None of the above

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