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In 2020, SixthZ sold its cornhole boards for $120 per board. Variable manufacturing costs per unit were $30, and fixed manufacturing costs at the normal
In 2020, SixthZ sold its cornhole boards for $120 per board. Variable manufacturing costs per unit were $30, and fixed manufacturing costs at the normal operating level of 1,500 units are $30,000. Variable selling expenses are $5 per board sold. Fixed administrative expenses total $10,000. SixthZ had no beginning inventory in 2020. During 2020, it produced 1,500 units and sold 1,250 units. What would the relationship between SixthZ's variable costing and absorption costing for 2020? Absorption operating income was $12,500 higher than variable income Variable operating income was $12,500 higher than absorption income Absorption operating income was $5,000 higher than variable income Variable operating income was $5,000 higher than absorption income
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