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RBU Systems manufactures testing equipment for the communications industry. RBU Systems reported sales of $123 million and a net operating loss of $18 million on
RBU Systems manufactures testing equipment for the communications industry. RBU Systems reported sales of $123 million and a net operating loss of $18 million on its absorption costing income statement. The company's break-even point is $115 million in sales according to CVP Analysis. Required: Assuming that the CVP analysis is correct, is it likely that the company's inventory level increased, decreased, or remained unchanged during the year? Increased Decreased Remained unchanged
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