Calculated using variable costing or absorption costing


Variable and Absorption Costing ........Chandler Company sells its product for$100 per unit. Variable manufacturing costs per unit are $40, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $16 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginnin ginventory in2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or absorption costing? Calculate reported income using each method

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Accounting Basics: Calculated using variable costing or absorption costing
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