Last Year, Chang Company Had a Net Operating Income of £77,000

question 56

Multiple Choice

Last year, Chang Company had a net operating income of £77,000 using absorption costing and a net operating income of £70,700 using variable costing. The fixed manufacturing overhead cost has been £3 per unit for the last three years. If 18,000 units were produced last year, then sales last year were

• A)20,100 units.
• B)24,300 units.
• C)11,700 units.
• D)15,900 units.