Larue Corporation manufactured 8,000 dolls in Year 1 without any sales. On December 31, Year 2, there were only5,000 dolls left unsold; no manufacturing occurred in Year 2. When compared to variable costing income, Larue'sabsorption costing income in Year 2 is Note: If there is no effect, leave the answer blank (zero) and select "No effect"from the drop down. Note 8,000 dolls are $72,000 manufacturing and 5,000 dolls are $60,000 non-manufacturing.

Larue's absorption costing income in Year 2 will be lower than variable costing income by…

Answered: Larue Corporation manufactured 8,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How do i calculate the net income for a special order? For example: Blowing Sand Company has just received a one-time offer to purchase 10,200 units of its Gusty model for a price of $34 each. The Gusty model costs $36 to produce ($29 in variable costs and $7 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order.

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