Problem:
Tribeca Company manufactures a variety of products. The following data pertain to the company's operations over the last two years:
Variable costing net operating income, last year $82,700
Variable costing net operating income, this year $87,800
Increase in ending inventory, last year 900
Decrease in ending inventory, this year 3,100
Fixed manufacturing overhead cost per unit $2
a. Determine the absorption costing net operating income for LAST year.
b. Determine the absorption costing net operating income for THIS year.