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XYZ Company sells its razors at $8.00 per unit. The following data relates to its first year of operations.
Sales 500 unitsProduction 1,000 units
Costs
Variable manufacturing $ 400
Fixed manufacturing 800
Variable selling 400
Fixed selling 200
a) Prepare an income statement based on variable costing.
b) Prepare an income statement based on absorption costing.
c) Provide all computations for each, example: Sales= Total Units Sold (500) x Price (8.00)
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