The level of inventory of a manufactured product has increased by 7,949 units during a period. The following data are also available:   Variable Fixed Unit manufacturing costs of the period $12.00  $5.00  Unit operating expenses of the period 4.00  4.00  The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$71,541 decrease b.$39,745 increase c.$39,745 decrease d.$71,541 increase

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The level of inventory of a manufactured product has increased by 7,949 units during a period. The following data are also available:

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

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

a.$71,541 decrease
b.$39,745 increase
c.$39,745 decrease
d.$71,541 increase
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