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During the most recent year, Sorter Company had operating income of $90,000 using absorption costing and $84,000 using variable costing. The fixed manufacturing overhead application rate was $5 per unit. There were no beginning inventories. If 22,000 units were produced last year, what were the sales in units for last year? 15,000 units. 21,000 units. 23,000 units. 20,800 units. Which of the following statements best defines an operation costing system? It is identical to a process costing system except that actual manufacturing overhead costs are traced to units of product. It is the same as a process costing system except that direct materials costs are accounted for in the same way as in job-order costing system. It is the same as a job-order costing system except that direct materials costs are accounted for in the same way as in a process costing system. It is identical to a job-order costing system except that actual manufacturing overhead costs are traced to units of product. The following is Knox Corporation's contribution format income statement for last month: Sales $900,000 Less: variable expenses 300,000 Contribution margin 500,000 Less: fixed expenses 400,000 Operating income $100,000 The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. What is the company's margin of safety percentage? 25%. 20%. 33%. 10%