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The level of inventory of a manufactured product has increased by 7,518 units during a period. The following data are also available: Variable Fixed Unit

The level of inventory of a manufactured product has increased by 7,518 units during a period. The following data are also available:

Variable Fixed
Unit manufacturing costs of the period $12.00 $3.00
Unit operating expenses of the period 4.00 5.00

The effect on operating income if variable costing is used rather than absorption costing would be a(n)

a.$60,144 decrease

b.$22,554 increase

c.$22,554 decrease

d.$60,144 increase

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