Poco Industries incurred the following expenses during the current year. Using both the variable costing...
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Accounting
Poco Industries incurred the following expenses during the current year. Using both the variable costing and absorption costing breakeven methods calculation the required unit sales needed for a target operating income of $104,000.
Fixed manufacturing costs
$45,000
Fixed nonmanufacturing costs
$35,000
Unit selling price
$100
Total unit cost
$40
Variable manufacturing cost rate
$20
Units produced
1,200 units
Required:
a. Absorption costing units required.
b. Variable costing units required.
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