2-25

Yuvil Corporation produces a single product. At the end of the company?s first year of operations, 1,000 units of inventory remained on hand. Its variable manufacturing overhead cost is $45 per unit and its fixed manufacturing overhead cost is $10 per unit. Yuvil?s absorption costing net operating income would be higher than its variable costing net operating income by: $0 $10,000 $35,000 $45,000