What was the absorption costing net operating income

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Problem 1: Bellue Inc. manufactures a single product. Variable costing net operating income was $77,000 last year and its inventory decreased by 2,700 units. Fixed manufacturing overhead cost was $1 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?

Multiple Choice

Option 1: $2,700

Option 2: $74,300

Option 3: $77,000

Option 4: $79,700

Reference no: EM132638321

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