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Assume the following (1) selling price per unit $25, (2) variable expense per unit = $13, (3) the total fixed expenses = $20,000, and (4)
Assume the following (1) selling price per unit $25, (2) variable expense per unit = $13, (3) the total fixed expenses = $20,000, and (4) net operating income $10,000. Given these four assumptions, unit sales must be: 2,300 units. O2,500 units. O Standard cost. 3,000 units. O2,500 units. Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Selling price Direct materials Per Unit Per Year $200 $74 $50 Direct labor Variable manufacturing overhead $10 Sales commission $8 Fixed manufacturing overhead $289,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? . The absorption costing net operating income will be lower than the variable costing net operating income by $28,900. The absorption costing net operating income will be lower than the variable costing net operating income by $100,900. The absorption costing net operating income will be higher than the variable costing net operating income by $28,900. The absorption costing net operating income will be higher than the variable costing net operating income by $100,900. O The absorption costing net operating income will be higher than the variable costing net operating income by $28.900. The absorption costing net operating income will be lower than the variable costing net operating income by $100,900. The absorption costing net operating income will be higher than the variable costing net operating income by $100,900. The absorption costing net operating income will be lower than the variable costing net operating income by $28,900
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