At the End of Last Year,Lee Company Had 30,000 Units

question 108

Multiple Choice

At the end of last year,Lee Company had 30,000 units in its ending inventory.Every year,Lee Company's variable production costs are $10 per unit,and its fixed manufacturing overhead costs are $5 per unit.The company's operating income for the year was $12,000 higher under variable costing than under absorption costing.Given these facts,what must have been the number of units of product in inventory at the beginning of the year?

• A) 27,600 units.
• B) 28,800 units.
• C) 32,400 units.
• D) 42,000 units.

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Definitions:

Separation Rituals

Activities or ceremonies that mark the transition of an individual from one role, status, or phase of life to another.

Divestment Ritual

A divestment ritual involves the symbolic removal of value or identity from an object, often as part of disposing of personal possessions.

Transition-Place

a location or phase that marks the change from one state or condition to another.

Iconic Transfer Rituals

Practices involving the transfer of items endowed with special meaning from one person to another, often as a part of ceremonial exchanges.