Green Company sells its product for $11,000 per unit. Variable costs per unit are: manufacturing, $6,000; and selling and administrative, $125. Fixed costs are: $30,000 manufacturing overhead, and $40,000 selling and administrative. There was no beginning inventory at 1/1/05. Production was 20 units per year in 2006 2008. Sales was 20 units in 2006, 16 units in 2007, and 24 units in 2008.

______14. Income under absorption costing for 2007 is

a. $ 8,000.

b. $14,000

c. $16,000

d. $22,000.

______15. Income under absorption costing for 2008 is

a. $33,000.

b. $39,000

c. $41,000

d. $47,000.

______16. Income under variable costing for 2007 is

a. $ 8,000.

b. $14,000

c. $16,000

d. $22,000.

______17. Income under variable costing for 2008 is

a. $33,000.

b. $39,000

c. $41,000

d. $47,000.

______18. For the three years 2006 - 8,

a. absorption costing income exceeds variable costing income by $6,000.

b. absorption costing income equals variable costing income.

c. variable costing income exceeds absorption costing income by $6,000.

d. absorption costing income may be greater than, equal to, or less than variable costing income depending on the situation.

______19. When units produced exceeds units sold,

a. net income under absorption costing is higher than net income under variable costing.

b. net income under absorption costing is lower than net income under variable costing.

c. net income under absorption costing equals net income under variable costing.

d. the relationship between net income under absorption costing and net income under variable costing cannot be predicted.

______20. When units sold exceeds units produced,

a. net income under absorption costing is higher than net income under variable costing.

b. net income under absorption costing is lower than net income under variable costing.

c. net income under absorption costing equals net income under variable costing.

d. the relationship between net income under absorption costing and net income under variable costing cannot be predicted.