Tester, Inc, a manufacturer of optical glass, began operations on February 1 of the current year. During this time, the compa of $12 per unit Cost information for this year is shown in the following table: 900,000 units and sold 800,000 units at a sales price Production costs Direct materials Direct labor Variable overhead Fixed overhead $.80 per unit 5.70 per unit 5500,000 in total 5450,000 in total Non-production costs Variable selling and administrative Fixed selling and administrative $30,000 in total $490,000 in total Given this information, which of the following is true? A. Net income under variable costing will exceed net income under absorption costing by S B. Net income under absorption costing will exceed net income under variable costing by $ C. Net income will be the same under both absorption and variable costing D. Net income under variable costing will exceed net income under absorption costing E. Net income under absorption costing will exceed net income under variable costing by by $60,000. 6. Sea Company reports the following information regarding its production cost Units produced Direct labor Direct materials Variable overhead Fixed overhead 42,000 units $35 per unit $28 per unit 317 per unit $105,000 in total Units sold 35000 Compute production cost per unit under variable costing (VC) and absorption costing (AC) $80.00 S82.50 AC $83.00 $82.50 A. B. C. $80.00 $82.50 D. $63.00 E. $80.00$80.00 $66.00 Assume a company sells a given product for $12 per unit. How many units must be sold to break even if variable selling costs are $0.50 per unit, variable production costs are $3.50 per unit, and total fixed costs are $4,500,000? 7. A. 281,250 units B. 391,305 units. C. 529,412 units. D. 562,500 units. E. 375,000 units Which of the following statements is true? A. A per unit cost that is constant at all production levels is a variable cost per unit. B. Reported income under variable costing is affected by production level changes C. A per unit cost that is constant at all production levels is a fixed cost per unit. D. Reported income under absorption costing is not affected by production level changes. 8. E. A cost that is constant over all levels of production is a variable cost