Business, 30.03.2021 18:00 skatelife8974

Assume that a company maintains no beginning inventory. It produced 4,000 units and sold 3,800 units of only one product for a price of $130 per unit. Its unit product cost under absorption costing includes variable manufacturing costs per unit are $80 and its fixed manufacturing overhead per unit is $24. Its variable selling and administrative expense is $12 per unit and its fixed selling and administrative expense is $45,000. Which of the following statements is true? A. Its absorption costing net operating income will be $2,400 less than its variable costing net operating income.
B. Its absorption costing net operating income will be $2,400 greater than its variable costing net operating income.
C. Its absorption costing net operating income will be $4,800 less than its variable costing net operating income.
D. Its absorption costing net operating income will be $4,800 greater than its variable costing net operating income.

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Assume that a company maintains no beginning inventory. It produced 4,000 units and sold 3,800 units...

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