Bradman Corporation Has Reported Operating Profit of $30 000 and a Fixed

Multiple Choice

Bradman Corporation has reported operating profit of $30 000 and a fixed overhead cost rate is $20 per unit for the current accounting period.Under absorption costing,if this company now produces an additional 100 units of inventory,then operating profit:

A) will increase by $2000.
B) will not be affected.
C) will increase by $2000 only if the additional 100 units of inventory are sold.
D) is indeterminable.