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Ellis Corporation The Following Information Was Extracted from the First Year Absorption-Based

Question 177

Multiple Choice

Ellis Corporation
The following information was extracted from the first year absorption-based accounting records of Ellis Corporation

Total fixed costs incurred	$100,000
Total variable costs incurred	50,000
Total period costs incurred	70,000
Total variable period costs incurred	30,000
Units produced	20,000
Units sold	12,000
Unit sales price	$12

Refer to Ellis Corporation.Based on variable costing,if Ellis had sold 12,001 units instead of 12,000,its income before income taxes would have been

A) $9.50 higher.
B) $11.00 higher.
C) $8.50 higher.
D) $8.33 higher.