Swisher, Incorporated reports the following annual cost data for its single product:Normal production level 30,000unitsDirect materials$6.40per unitDirect labor$3.93per unitVariable overhead$5.80per unitFixed overhead$150,000in total This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's income increase or decrease under absorption costing?
A. $60,000 increase.
B. $90,000 increase.
C. There is no change in income.
D. $90,000 decrease.
E. $60,000 decrease.
Answer: A
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