Using the Given Information, Determine the Income Under Both the Absorption

question 41

Essay

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. $\begin{array}{llcc} \text { Beginning Inventory units } & -0- \\ \text { Units produced } &12,400\\ \text { Ending Inventory } &1,400\\ \text {Sales price per unit } &\$50.00\\ \text { Variable manufacturing costs per unit } &22.00\\ \text { Variable selling \( \& \) administrative costs per unit} &5.00\\ \text { Fixed manufacturing costs } &\$58,900\\ \text { Fixed selling and administrative costs } &\$75,020\\\end{array}$

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Definitions:

Carbon Dioxide Emissions

The release of CO2 into the atmosphere, primarily from burning fossil fuels for energy, which is a major driver of climate change.

Nondepletable

Resources or energy sources that cannot be exhausted, typically renewable energies like solar, wind, and hydroelectric power.

Geothermal Energy

Heat energy generated and stored within the Earth, harnessed by humans for heating and generating electricity with minimal environmental impact.

Molten Rock

Liquid rock material formed under the earth's surface at extremely high temperatures, known as magma, or on the surface as lava from a volcanic eruption.