During the Most Recent Year,Evans Company Had Operating Income of $90,000

Multiple Choice

During the most recent year,Evans Company had operating income of $90,000 using absorption costing and $84,000 using variable costing.The fixed manufacturing overhead application rate was $6 per unit.There were no beginning inventories.If 22,000 units were produced last year,what were the sales in units for last year?

A) 15,000 units.
B) 21,000 units.
C) 23,000 units.
D) 28,000 units.Sales = 22,000 - 1,000 = 21,000 units.