Last Year,Ben Company's Operating Income Under Absorption Costing Was $4,400

question 117

Multiple Choice

Last year,Ben Company's operating income under absorption costing was $4,400 lower than its operating income under variable costing.The company sold 8,000 units during the year,and its variable costs were $8 per unit,of which $3 was variable selling expense.Fixed manufacturing overhead was $1 per unit in beginning inventory under absorption costing.Ending inventory was zero.How many units did the company produce during the year?

• A) 3,600 units.
• B) 7,120 units.
• C) 7,450 units.
• D) 12,400 units.

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