Last Year, Craft Company Had a Net Operating Income of £80,000

question 9

Multiple Choice

Last year, Craft Company had a net operating income of £80,000 using absorption costing and £74,500 using variable costing. The fixed manufacturing overhead cost has been £5 per unit for the last three years. If 21,500 units were produced last year, then sales last year were

• A)16,000 units.
• B)20,400 units.
• C)22,600 units.
• D)27,000 units.

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