At XLT Inc., variable costs are $80 per unit, and fixed costs are $40,000. Sales are estimated to be 4,000 units.
a. How much would absorption costing operating income differ between a plan to produce 8,000 units and a plan to produce 10,000 units?
b. How much would variable costing operating income differ between the two production plans?

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The Answer of At XLT Inc., variable costs are $80 per unit, and fixed costs are $40,000. Sales are estimated to be 4,000 units.
a. How much would absorption costing operating income differ between a plan to produce 8,000 units and a plan to produce 10,000 units?
b. How much would variable costing operating income differ between the two production plans?