The inventory of a product has decreased during the month by 12,000 units. Per unit costs are as follows: Variable Fixed Per unit manufacturing costs for the period $10.00 $2.00 Per unit operating expenses of the period $5.00 $1.00 What is the effect on income from operations if absorption costing is used rather than variable costing?

a. $24,000 decrease
b. $36,000 increase
c. $36,000 decrease
d. $24,000 increase


a

Business

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