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The level of inventory of a manufactured product has increased by 7,225 units during a period. The following data are also available: Variable Fixed Unit
The level of inventory of a manufactured product has increased by 7,225 units during a period. The following data are also available:
Variable | Fixed | |
Unit manufacturing costs of the period | $12 | $7 |
Unit operating expenses of the period | $2 | $2 |
What would be the effect on income from operations if absorption costing is used rather than variable costing?
a.$50,575 increase
b.$65,025 decrease
c.$50,575 decrease
d.$65,025 increase
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