Routit Corporation had the following sales and production for the past four years: Year 1 Year 2 … Assignment Help


Routit Corporation had the following sales and production forthe past four years: Year 1 Year 2 Year 3 Year 4 Production inunits 5,000 6,000 5,000 5,000 Sales in units 4,000 5,000 5,0007,000 Selling price per unit, variable cost per unit, and totalfixed cost are the same each year. There were no beginninginventories in Year 1. Which of the following statements iscorrect? Under variable costing, net operating income for Year 3and Year 4 would be the same. Under variable costing, net operatingincome for Year 2 and Year 3 would be the same. Variable costingnet income would exceed absorption costing net income in Year 1.Absorption costing net income would exceed variable costing netincome in Year 4.

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