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Variable manufacturing costs are $150 per unit, and fixed manufacturing costs are $75,000. Sales are estimated...

Variable manufacturing costs are $150 per unit, and fixed manufacturing costs are $75,000. Sales are estimated to be 6,000 units. How much would variable costing operating income differ between a plan to produce 6,000 units and a plan to produce 7,500 units?

a. $15,000

b. $18,750

c. $225,000

d. No difference

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Answer #1

Income under variable costing operating income differ by (7500-6000)*$150 = $225,000

Option c. is correct answer.

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