Solution manual cost accounting by carter 14e ch120

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... Total cost with agents = receiving 25% commission Total cost with company’s own sales force (85% variable cost × sales) = + $100,000 fixed cost (65% variable cost × sales) + $350,000 fixed cost. .. direct costing would be smaller than operating income using absorption costing Direct costing excludes fixed factory overhead from inventories because such costs are considered to be period costs... E20-2 (1) Variable cost $7,000,000 60% $4,200,000 per unit: total variable cost manufacturing cost portion total variable manufacturing cost $4,200,000 total variable manufacturing cost 140,000 units
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