Fixed costs are $50 per unit and variable costs are $125 per unit. Production was 130,000 units, while sales were 125,000 units. Determine (a) whether variable cost income from operations is less than or greater than absorption costing income from operations, and (b) the difference in variable costing and absorption costing income from operations.

Variable costing income from operations is less than absorption cost income from operations because under variable costing method, variable costs are considered as product cost and fixed costs are treated as period costs.

The difference in variable costing and absorption costing income from operations:

Production was 130,000 units

Sales were 125,000 units

Closing stock = 130,000 - 125,000 = 5,000

= Closing stock * Fixed cost per unit  

= 5,000 * $50

= $250,000

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'