Roberts Company Produces a Single Product

question 148

Multiple Choice

Roberts Company produces a single product.This year,the company's net operating income under absorption costing was $2,000 lower than under variable costing.The company sold 8,000 units during the year,and its variable costs were $8 per unit,of which $2 was variable selling and administrative expense.If production cost was $10 per unit under absorption costing,then how many units did the company produce during the year? (The company produced the same number of units last year. )

• A)7,500 units
• B)7,000 units
• C)9,000 units
• D)8,500 units

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