less interest expense $(fromSt$ A Expense Budget$)$

$-$ Net Income

Manufacturing budgets:

Sales Budget

Cash Collections Budget

Production Budget

how many units to produce in period

Budgeted sales in units $+$ Desired End Inventory $=$ Total needs, then $-$

$$ Desired End inventony $=n\%$ next month's budgeted sales

Direct Materials Budget

need required production for each period, then multiply by units of

add desired ending inventory beginning inventory to de getermine total production needs

At the end of last year, Lee Company had $40,000$ units in its ending

inventory. Every year, Lee Company's variable production costs are

$$10$ per unit, and its fixed manufacturing overhead costs are $$6$ per

unit. The company's operating income for the year was $$11,000$

higher under variable costing than under absorption costing. Given

these facts, what must have been the number of units of product in

inventory at the beginning of the year?

a$.17,667$

b$.41,833$

c$.38,900$

d$.29$