In its first year of operations, Bronfren Corporation produced 800,000 sets and

ID: 2435683 • Letter: I

Question

In its first year of operations, Bronfren Corporation produced 800,000 sets and sold 780,000 sets of artificial tan lines. What would have happened to net operating income in this first year under the following costing methods if Bronfren had produced 20,000 fewer sets? (Assume that Bronfren has both variable and fixed production costs.) Variable costing = Increase; Absorption costing = Increase
Variable costing = Decrease; Absorption costing = Increase
Variable costing = Decrease; Absorption costing = Decrease
Variable costing = No effect; Absorption costing = Decrease
Variable costing = No effect; Absorption costing = No effect

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In its first year of operations, Bronfren Corporation produced 800,000 sets and sold 780,000 sets of artificial tan lines. What would have happened to net operating income in this first year under the following costing methods if Bronfren had produced 20,000 fewer sets? (Assume that Bronfren has both variable and fixed production costs.) Variable cost per unit remain same irrespective of number of units produced. Absoption costing will decrease with decrease in units produced. Variable costing = No effect; Absorption costing = Decrease

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In its first year of operations, Bronfren Corporation produced 800,000 sets and

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