For the Most Recent Year,Atlantic Company's Operating Income Computed Using

question 14

Multiple Choice

For the most recent year,Atlantic Company's operating income computed using the absorption costing method was $7,400,and its operating income computed using the variable costing method was $10,100.The company's unit product cost was $17 under variable costing and $22 under absorption costing.Atlantic produces the same number of units each year.What must have been the beginning inventory if the ending inventory consisted of 1,460 units?

• A) 920 units.
• B) 1,460 units.
• C) 2,000 units.
• D) 12,700 units.

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