During the Year Just Ended,Roberts Company's Operating Income Under Absorption

question 54

Multiple Choice

During the year just ended,Roberts Company's operating income under absorption costing was $3,000 lower than its operating income under variable costing.The company sold 9,000 units during the year,and its variable costs were $9 per unit,of which $3 was variable selling expense.If production cost is $11 per unit under absorption costing every year,how many units did the company produce during the year?

• A) 8,000 units.
• B) 8,400 units.
• C) 9,600 units.
• D) 10,000 units.

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Definitions:

Capital Contributions

The value of assets contributed to a company by its owners or shareholders.

Beginning Capital Balance

The amount of capital recorded in a company's accounts at the start of a financial period.