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13-2 acc561 - 13-45 Determine operating income for 20X7...

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13-45 Determine operating income for 20X7, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.) Variable Manufacturing Cost per Unit = $120,000 / 15,000 units = $8 per unit Variable Nonmanufacturing Cost per Unit = $24,000 / 12,000 units = $2 per unit Operating Income = Sales – Variable manufacturing cost – variable non manufacturing cost – fixed manufacturing costs – fixed non manufacturing costs. = (12,000 x $17) – (12,000 x $8) – (12,000 x $2) – $63,000 – $18,000 = $204,000 – $96,000 – $24,000 – $63,000 – $18,000 = $3,000 Assume that there is no January 1, 20X7, inventory; no variances are allocated to inventory; and the firm
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