The level of inventory of a manufactured product has increased by 8,695 units during a period. The following data are also available: Variable Fixed $12.00 $3.00 2.00 4.00 Unit manufacturing costs of the period Unit operating expenses of the period The effect on operating income if absorption costing is used rather than variable costing would be a a. $26,085 increase b. $26,085 decrease c. $60,865 increase d. $60,865 decrease

The level of inventory of a manufactured product has increased by 8,695 units during a period. The following data are also available: The effect on operating income if absorption costing is used rather than variable costing would be a a. $26,085 increase b. $26,085 decrease c. $60,865 increase d. $60,865 decrease