Willis Company Had a Net Operating Income of £75,000 Using

question 36

Multiple Choice

Willis Company had a net operating income of £75,000 using variable costing and a net operating income of £57,000 using absorption costing. Variable production costs were £15 per unit. Total fixed manufacturing overhead was £120,000 and 10,000 units were produced. During the year, the stock level

• A)increased by 1,200 units.
• B)increased by 1,500 units.
• C)decreased by 1,500 units.
• D)decreased by 1,200 units.