Could you please explain each choice? Routsong Company had the following sales and...
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Could you please explain each choice?
Routsong Company had the following sales and production data for the past four years: (assume that the beginning and ending WIP are zeros in all years) Year 1 Year 2 Year 3 Year 4 Production in units 6,000 9,000 4,000 5,000 Sales in units 6,000 6,000 5,000 7,000 Selling price per unit, variable costs per unit and total fixed costs are the same in each year. Which of the following statements is not correct? A) Under variable costing, net operating income for Year 1 and Year 2 would be the same. B) Because of the changes in production levels from year to year, per unit CGM value will change each year under variable costing. C) The total net operating income for all four years combined would be the same under variable and absorption costing. D) Under absorption costing, net operating income in Year 4 would be less than the net operating income under variable costing. E) None of the above. >
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