During the Last Year,Hansen Company Had Operating Income Under Absorption

question 103

Multiple Choice

During the last year,Hansen Company had operating income under absorption costing that was $5,500 lower than its operating income under variable costing.The company sold 9,000 units during the year,and its variable costs were $10 per unit,of which $6 was variable selling expense.If fixed production cost is $5 per unit under absorption costing every year,how many units did the company produce during the year?

• A) 7,625 units.
• B) 7,900 units.
• C) 8,450 units.
• D) 10,100 units.

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