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Variable costing net operating income, last year....$55,800
Variable costing net operating income, this year....$74,500
Increase in ending inventory, last year....3,600
Decrease in ending inventory, this year...1,500
Fixed manufacturing overhead cost per unit...$7

a. Determine the absorption costing net operating income for last year.

b. Determine the absorption costing net operating income for this year.

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