i don't understand how i should use the budgeted denominator? if i have to make any use of it...

Veach Corporation incurred xed manufacturing costs of 6,000 during 20x5. Other information for 20x5 includes: The budgeted denominator level is 1,000 units. Units produced total 750 units. Units sold total 600 units. Beginning inventory was zero. The company uses variable costing (also referred to as marginal or direct costing) and the xed manufacturing cost rate is based on the budgeted denominator level. Income using variable costing will be than income if using absorption costing