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. Marathon, Inc. makes and sells dancing shoes. The variable cost per pair to produce is...

. Marathon, Inc. makes and sells dancing shoes. The variable cost per pair to produce is $10 and the selling price is $25 per pair. They currently have 500 pair in inventory from a prior period, valued per GAAP at $15 per pair. If Marathon, Inc. makes 1,000 pairs of dancing shoes and sells 1,500 pairs, what will be the difference in net income between absorption costing and variable costing? A. Net income under variable costing will be $2,500 more than net income under absorption costing. B. Net income under absorption costing will be $2,500 more than net income under variable costing. C. Net income under variable costing will be $7,500 more than net income under absorption costing. D. Net income under absorption costing will be $7,500 more than net income under variable costing.

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ekkarill92 answered 2 years ago
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