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elena55
2 months ago
9

Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 uni

ts. If an amount is zero, enter "0". a. How much would absorption costing income from operations differ between a plan to produce 10,000 units and a plan to produce 15,000 units? $ b. How much would variable costing income from operations differ between the two production plans? $
Business
1 answer:
Scilla [3.8K]2 months ago
6 0

Answer:

A) 10,000 units = 15.75 dollars each

15,000 units = 10.5 dollars each.

B) 10,000 units = 1,260,000 in variable costs

15,000 units = 1,875,000 in variable costs

Explanation:

To determine the first figure, simply divide the fixed costs, which include operational and administrative expenses from the production of goods, by the total units produced, computed as follows:

157,500/10,000= 15.75

157,500/15,000=10.5

To calculate the difference regarding variable costing, multiply the per-unit cost by the total units expected to be produced:

126x10,000=1,260,000

126x15,000=1,875,000

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