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A company manufactures 50,000 units of a product and sells 40,000 units. Total manufacturing cost per unit is $50 (variable manufacturing cost, $10;...
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15.

A company manufactures 50,000 units of a product and sells 40,000 units. Total manufacturing cost per unit is $50 (variable manufacturing cost, $10; fixed

manufacturing cost, $40). Assuming no beginning inventory, the effect on net income if absorption costing is used instead of variable costing is that:A.net income is $400,000 lowerB.net income is $400,000 higherC.net income is the sameD.net income is $200,000 higherE.none of the above
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Subject: Accounting, Business

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