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Poco Industries incurred the following expenses during the current year. Using both the variable costing...

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Accounting

Poco Industries incurred the following expenses during the current year. Using both the variable costing and absorption costing breakeven methods calculation the required unit sales needed for a target operating income of $104,000.

Fixed manufacturing costs

$45,000

Fixed nonmanufacturing costs

$35,000

Unit selling price

$100

Total unit cost

$40

Variable manufacturing cost rate

$20

Units produced

1,200 units

Required:

a. Absorption costing units required.

b. Variable costing units required.

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