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how do you calcuate costs of goods sold and selling and administrative expenses?

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Construct the Absorption Costing Income Statement
Year 1
Year 2
Sales
$ 400,000
$ 300,000
Cost of goods sold
256,000
240,000
Gross margin
144,000
60,000
Selling and administrative expenses
102,000
94,000
Net operating income
$ 42,000
$ (34,000)

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