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Question
Front Company had net income of $72,500 based on variable costing. Beginning and ending inventories were 800 units and 1,200 units, respectively. Assume the fixed overhead per unit was $7.90 for both the beginning and ending inventory. What is net income under absorption costing?A. $69,340
B. $75,660
C. $88,300
D. $56,700
E. $72,900
Answer
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