Caspian Company produced 20,000 units and sold 18,000 unitsdurig the current year. Under absorption costing, net income was$25,000. Fixed overhead was $190,000. Determine the net incomeunder variable costing.
xxxxxxxxxxxxxxxxxFixed xxxxxxxxxx;xx;xx;xx; xxx,xxx.xxxx of xxxxx produced
xx,xxx.xxxxxxx xxxxxxxx per xxxx =190,000/20,000
xxxxxxx xxxxx = 20,000 - 18,000
x,xxx.xxxxxxx xxxxx cost xx closing xxxxx xxxxxxxxxxxxxxxx;xx;xx;xx;xx;xx; xx,xxx.xxThis xxxxx that xx xxxxxxxxxxxxxxxxx xx,xxx fixed xxxx was xxxxxxxx xxxx under xxxxxxxxxxxxxxx would xx xxxx xy 19,000
xxxx net xxxxxx xxxxx xxxxxxxxxxxxxxx is xx,xxx -19,000