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In the first year of operations, a company manufactured 125,000 units and sold 95,000 units. How do you compare the operational income using variable cost
In the first year of operations, a company manufactured 125,000 units and sold 95,000 units. How do you compare the operational income using variable cost with the operational income using full cost?
A. The two quantities will be the same because what determines the income are the units sold.
B. Variable cost always results in higher income than variable cost
C. Full cost will result in higher income because part of the fixed manufacturing costs remained in the inventory
D. You can't answer the question with the information Provided for
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