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The company sold 28,000 units in the East region and 10,000 units in the West region. It determined that $170,000 of its fixed selling and administrative expense is traceable to the West region, $120,000 is traceable to the East region, and the remaining $56,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.'
Required:
a. What is the company’s total gross margin under absorption costing?
b. What is the company’s net operating income (loss) under absorption costing?
c. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?
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The company sold 28,000 units in the East region and 10,000 units in the West region. It determined...
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