The level of inventory of a manufactured product has increased by 7,049 units during a period. The following data are also available:

Variable Fixed

Unit manufacturing costs of the period $11.00 $6.00

Unit operating expenses of the period 1.00 1.00

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

a.$42,294 increase

b.$42,294 decrease

c.$49,343 increase

d.$49,343 decrease