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Mitchel Corporation Manufactures a Single Product

question 126

Essay

Mitchel Corporation manufactures a single product. Last year, variable costing net operating income was $55,000. The fixed manufacturing overhead costs released from inventory under absorption costing amounted to $24,000.
Required:
Determine the absorption costing net operating income last year. Show your work!


Definitions:

Times Interest Earned

A ratio that measures a company's ability to meet its interest payments on outstanding debt.

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