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Smith Company had net operating income of P105,000 using variable costing and P125,000 using absorption costing. Variable production costs were P20 per unit. Total fixed

Smith Company had net operating income of P105,000 using variable costing and P125,000 using absorption costing. Variable production costs were P20 per unit. Total fixed manufacturing overhead was P176,000 and 11,000 units were produced. During the year, the inventory

A. increased by 1,250 units

B. decreased by 1,000 units

C. decreased by 1,250 units

D. increased by 1,000 units

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