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At XLT Inc., variable costs are $80 per unit, and fixed costs are $40,000. Sales...

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Accounting

At XLT Inc., variable costs are $80 per unit, and fixed costs are $40,000. Sales are estimated to be 4,000 units.
a. If the company switches from a plan to produce 8,000 units to a plan to produce 10,000 units, absorption costing income from operations would (increase or decrease?)
by
b. How much would variable costing income from operations differ between the two production plans? (small, large or no difference?)
image

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