The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available:

	Variable	Fixed
Unit manufacturing costs of the period	$24.00	$10.00
Unit operating expenses of the period	8.00	3.00

What would be the effect on income from operations if variable costing is used rather than absorption costing?

a.$65,000 increase

b.$50,000 increase

c.$50,000 decrease

d.$65,000 decrease

Calculator Print Item The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: Unit manufacturing costs of the period Unit operating expenses of the period Variable $24.00 8.00 Fixed $10.00 3.00 What would be the effect on income from operations if variable costing is used rather than absorption costing? a. $65,000 increase x b. $50,000 increase c.$50,000 decrease d. $65,000 decrease Previous