What the effect on operating income

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Question - The level of inventory of a manufactured product has increased by 7,518 units during a period. The following data are also available:

 

Variable

Fixed

Unit manufacturing costs of the period

$12.00

$3.00

Unit operating expenses of the period

4.00

5.00

Required - What the effect on operating income if variable costing is used rather than absorption costing would be a(n)?

a. $60,144 decrease

b. $22,554 increase

c. $22,554 decrease

d. $60,144 increase

Reference no: EM133133785

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