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13 Jane Finch started a company to manufacture and sell dental accessories last year. Jane was able to increase her sales and (variable costing) net
13 Jane Finch started a company to manufacture and sell dental accessories last year. Jane was able to increase her sales and (variable costing) net operating income (NO) in Year 2. Below are her selected actual operating results for the first two years of operation (her cost structure and selling prices were the same in Year 1 and Year 2). She allocates her fixed manufacturing overhead costs to the number of units produced in each year Year 1 Year 2 Units produced 35.000 Units sold 31,000 36,000 Absorption costing NOI Variable costing NOI s 85,000 $ 110,000 35.000 92 What was the total net operating income under absorption costing for the two years (Yearl +Year 287 A. S108,000 B. $195,000 C. $220.000 D. $201.000 E None of the above
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