What the beginning inventory in units must have been

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Problem 1: For 2014, Arco Company's operating income computed by the Absorption Costing method was $6,400 and its operating income computed by the Variable Costing method was $9,100. The product's cost was $17 under variable costing and $20 under absorption costing. If the ending inventory consisted of 2,100 units, the beginning inventory in units must have been:

a) 3,000 units

b) 900 units

c) 1,200 units

d) Cannot be determined

Reference no: EM132838033

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