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How much would absorption costing operating income differ

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Problem - Variable costs are $70 per unit and fixed costs are $150,000. Sales are estimated to be 10,000 units. How much would absorption costing operating income differ between a plan to produce 10,000 units and 12,000 units?

a. $150,000 greater for 12,000 units

b. $150,000 less for 12,000 units

c. $25,000 greater for 12,000 units

d. $25,000 less for 12,000 units

Reference no: EM132763794

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