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Unformatted text preview: Short Answer Questions 1. Production = 30,000 units Absorption NOI > Variable NOI Are we selling more than, less than, or exactly 30,000 units? If absorption > variable, it would have to be selling less than 30,000 units to give us inventory deferring FOH. 2. Using JIT for the last 3 years and this year, is Absorption NOI greater, less than, or pretty close to Variable NOI for this year? They will be pretty close to each other. ( Little inventory) 3. $5,000,000 Sales BEP = $5,000,000 Sales $300,000 loss on I/S Is inventory going up, down, or staying the same? Down...
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This note was uploaded on 08/25/2010 for the course ACCT 208 taught by Professor Kingery during the Spring '08 term at University of Delaware.
- Spring '08