Using the given information, determine the income under both the absorption and the direct (variable)costing methods for CRL Company this year. Explain the difference, if any.
Definitions:
Gross Margin Ratio
A financial metric showing the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company’s core operations.
Profit Margin
Profit Margin indicates the percentage of revenue that remains as profit after all expenses are deducted, showcasing a company's efficiency in generating profit from sales.
Net Income
Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from its total revenue.
Exchange Rate
The value of one currency for the purpose of conversion to another, affecting international trade and investments.
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