SCHE periods 38 Which of the following is true of a company that has both...
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SCHE periods 38 Which of the following is true of a company that has both fixed and variable manufacturing overhead, uses absorption costing, manufactures 100 units in period 1 and sells 80 units in period 1 and manufactures 60 units in period 2 and sells 80 units in period 2? Assume sales price, fixed costs and variable costs per unit are consistent across both years. (2 Points) Net income is higher in period 2 Sales are higher in period 1 Manufacturing costs are higher in period 1 Operating income is the same in both periods 39 If unit sales are constant in period 1 and period 2. net operating income under variable costing will: (2 points) Increase in period 2 if more products are manufactured O Decrease in period 2 if more products are manufactured Remain the same in period 1 and period 2 Be greater than net operating income under absorption costing
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