During the Most Recent Year,Evans Company Had Operating Income of $90,000

question 128

Multiple Choice

During the most recent year,Evans Company had operating income of $90,000 using absorption costing and $84,000 using variable costing.The fixed manufacturing overhead application rate was $6 per unit.There were no beginning inventories.If 22,000 units were produced last year,what were the sales in units for last year?

• A) 15,000 units.
• B) 21,000 units.
• C) 23,000 units.
• D) 28,000 units.Sales = 22,000 - 1,000 = 21,000 units.

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