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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 10,000 tables. The tables sold for $120 each. How would Eagle's variable costing net operating income have been affected in its first year if only 9,000 tables were sold instead of 10,000?
A. net operating income would have been $37,100 lowerB. net operating income would have been $45,800 lowerC. net operating income would have been $56,000 lowerD. net operating income would have been $62,000 lower
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Sierra Company manufactures woven blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.
Explain how this error will affect Grayson's 2013 financial statements, assuming that Grayson uses the perpetual inventory system.
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