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Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure:
In its first year of operations, Eagle produced and sold 11,050 tables. The tables sold for $185 each.
How would Eagle's absorption costing net operating income have been affected in its first year if 13,810 tables were produced instead of 11,050 and Eagle still sold 11,050 tables?
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Worthington Company purchased a machine on January 1, 2008, for $3,600,000. At the date of acquisition, the machine had an estimated useful life of six years with no salvage.
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