The EG Company produces and sells one product: a microwave oven.The following data refer to the year just completed: 
Required:
a)Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.
b)Prepare an income statement for the year using absorption costing.
c)Prepare an income statement for the year using variable costing.
d)Reconcile the absorption costing and variable costing operating income figures in b)and c)above.
Definitions:
Managing
The process of planning, leading, organizing, and controlling resources, such as human capital and financial assets, to achieve organizational objectives efficiently and effectively.
Corporation
A legal entity that is separate and distinct from its owners, providing limited liability to its shareholders.
The Board of Directors
A group of individuals elected by the shareholders of a corporation to oversee and make decisions on behalf of the corporation.
Partnership
An officially authorized business partnership in which two or more persons co-manage the operation and profit-sharing.
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