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At EOM Inc

Question 42

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At EOM Inc.,the beginning inventory is 20,000 units.All of the units manufactured during the period and 16,000 units of the beginning inventory were sold.The beginning inventory fixed costs are $50 per unit,and variable costs are $300 per unit.Determine (a)whether variable costing income from operations is less than or greater than absorption costing income from operations,and (b)the difference in variable costing and absorption income from operations.

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