“Last year, Peck Company produced 10,000 units and sold 9,000 units. Fixed manufacturing overhead costs were $27,000, and variable manufacturing overhead costs were $3.70 per unit. For the year, one would expect net operating income under absorption costing to be:”,”$2,700 more$27,000/10,000 = $2.70 10,000 – 9,000 = 1,000 1,000 x 2.70 = $2

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“*****************We always start each year with 10,000 finished baseballs in inventory on January 1st. Each month during the year we want 25% of the following month’s unit sales in ending inventory. We expect 225,000 units to be sold in April.What is the number of baseballs Beaver Baseball needs to produce in January?”,”66

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