Croft Corporation Produces a Single Product

Multiple Choice

Croft Corporation produces a single product. Last year, the company had a net operating income of $93,800 using absorption costing and $81,600 using variable costing. The fixed manufacturing overhead cost was $10 per unit. There were no beginning inventories. If 28,000 units were produced last year, then sales last year were:

A) 15,800 units
B) 26,780 units
C) 29,220 units
D) 40,200 units