.

The income of Macquarie Manufacturing Ltd for a year on a variable costing basis is $85,000 and on an absorption costing basis is $73,000. Fixed costs per unit were the same in both the prior and current year ($1.20 per unit). What was the change in inventory over the year?

Select one:

A.

Increase of 12,000 units

B.

Increase of 10,000 units

C.

Decrease of 10,000 units

D.

Decrease of 12,000 units.