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Question Content Area The level of inventory of a manufactured product has increased by...

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Accounting

Question Content Area
The level of inventory of a manufactured product has increased by 8,145 units during a period. The following data are also available:
Line Item Description Variable Fixed
Unit manufacturing costs of the period $12.00 $5.00
Unit operating expenses of the period 1.003.00
The effect on operating income if absorption costing is used rather than variable costing would be a
a. $40,725 decrease
b. $65,160 increase
c. $40,725 increase
d. $65,160 decrease

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