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Business, 05.05.2020 22:42 245cat

The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available:

Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00

The effect on operating income if variable costing is used rather than absorption costing would be a(n):

a) $104,000 decrease.
b) $80,000 decrease.
c) $104,000 increase.
d) $80,000 increase.

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