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The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available: Variable Fixed Unit

The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available:

Variable

Fixed

Unit manufacturing costs of the period

$12.00

$6.00

Unit operating expenses of the period

4.00

1.50

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

$42,000 decrease

$42,000 increase

$52,500 increase

$52,500 decrease

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