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The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available
Unit manufacturing costs of the period: Variable: $24 Fixed: $10
Unit operating expenses of the period: Variable: 8 Fixed:3
What souled be the effect on income from operations if variable costing is used rather than absorption costing?
A. $80,000 decrease
B. $80,000 increase
C. $88,000 increase
D. $104,000 increase
The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available
Unit manufacturing costs of the period: Variable: $24 Fixed: $10
Unit operating expenses of the period: Variable: 8 Fixed:3
What souled be the effect on income from operations if variable costing is used rather than absorption costing?
A. $80,000 decrease
B. $80,000 increase
C. $88,000 increase
D. $104,000 increase
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