Variable and absorption costing grant company sells its product for $50 per unit. variable manu-

facturing costs per unit are $30, and fixed manufacturing costs at the normal operating level of 18,000

units are $90,000. variable selling expenses are $4 per unit sold. fixed administrative expenses total

$155,000. grant had 7,000 units at a per-unit cost of $35 in beginning inventory in 2016. during

2016, the company produced 18,000 units and sold 20,000. would net income for grant company in

2016 be higher if calculated using variable costing or using absorption costing? calculate reported

income using each method.

Consider the following potential events that might have occurred to global on december​ 30, 2016. for each​ one, indicate which line items in​ global's balance sheet would be affected and by how much. also indicate the change to​ global's book value of equity. a. global used $ 19.8$19.8 million of its available cash to repay $ 19.8$19.8 million of its​ long-term debt. b. a warehouse fire destroyed $ 4.9$4.9 million worth of uninsured inventory. c. global used $ 4.6$4.6 million in cash and $ 5.1$5.1 million in new​ long-term debt to purchase a $ 9.7$9.7 million building. d. a large customer owing $ 3.2$3.2 million for products it already received declared​ bankruptcy, leaving no possibility that global would ever receive payment. e. ​global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 48 %48%. f. a key competitor announces a radical new pricing policy that will drastically undercut​ global's prices.