Vision Tester,Inc

question 72

Multiple Choice

Vision Tester,Inc.,a manufacturer of optical glass,began operations on February 1 of the current year.During this time,the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit.Cost information for this year is shown in the following table: Given this information,which of the following is true?

• A)Net income under variable costing will exceed net income under absorption costing by $50,000.
• B)Net income under absorption costing will exceed net income under variable costing by $50,000.
• C)Net income will be the same under both absorption and variable costing.
• D)Net income under variable costing will exceed net income under absorption costing by $60,000.
• E)Net income under absorption costing will exceed net income under variable costing by $60,000.

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