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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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