![Jacket](/sites/dl/free/0077098595/title/sgn_ma_sm.jpg) Management Accounting Willie Seal,
University of Essex, UK Ray Garrison,
Brigham Young University, Provo, Utah, USA Eric Noreen,
INSEAD, France
Cost-Volume-Profit Relationships
Internet Exerciseswww: IE7-22 Estimating Variable Costing Net Income from an Absorption
Costing Income Statement. Intel Corporation is the world's largest manufacturer
of computer processor chips. The company's manufacturing processes are highly
automated, so most manufacturing costs are fixed. You can access the company's
most recent annual report in the Investor Relations section of its web site
at www.intel.com. Its most recent operating income
figure is on its income statement, and the values of beginning and ending inventories
are on its balance sheet. Assume that Intel uses absorption costing in its annual report and that 60%
of the cost of its beginning and ending inventories consists of fixed manufacturing
overhead costs. Estimate the company's operating income if it had used variable
costing. |
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