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Casco Co. planned to produce and sell $ 40,000 unites. At that volume level, variable costs are evaluated to be $ 320,000 and fixed costs are $30,000. The planned selling price is $10 per unit. Casco in fact produced and sold 42,000 units.
Required:
Using a contribution margin format:
a) Create a fixed budget income statement for the planned level of sales and production.b) Create a fixed budget income statement for actual level of sales and production.c) Which budget would we use to compare to actual results and why?
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