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The level of inventory of a manufactured product has increased by 7,801 units during a period. The following data are also available:

	Variable	Fixed
Unit manufacturing costs of the period	$13.00	$4.00
Unit operating expenses of the period	2.00	3.00

The effect on operating income if variable costing is used rather than absorption costing would be a(n)

a. $31,204 increase

b. $31,204 decrease

c. $54,607 decrease

d. $54,607 increase