The level of inventory of a manufactured product has increased by 8,417 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $75,753 decrease Ob. $75,753 increase Oc. $67,336 increase Od. $67,336 decrease

The level of inventory of a manufactured product has increased by 8,417 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $11.00 $8.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) Oa. $75,753 decrease Ob. $75,753 increase Oc. $67,336 increase Od. $67,336 decrease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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