Write a short memo to the chief operating officer

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Question - Harris Company's fixed overhead costs are $4 per unit, and its variable overhead costs are $8 per unit. In the first month of operations, 50,000 units are produced, and 46,000 units are sold.

Write a short memo to the chief operating officer explaining which costing approach will produce the higher income; also explain the cause of the numerical difference between using absorption costing versus variable costing.

Reference no: EM133071879

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