The beginning inventory consists of 6,000 units, all of which are sold during the period. The beginning inventory fixed costs are $20 per unit, and variable costs are $90 per unit. What is the difference in in¬ come from operations between variable and ab¬ sorption costing?

A.Variable costing income from operations is $540,000 less than under absorption costing.

B. Variable costing income from operations is

$660,000 greater than under absorption costing.

C. Variable costing income from operations is

$120,000 less than under absorption costing.

D. Variable costing income from operations is

$120,000 greater than under absorption costing.

AppendixLO1