Multiple Choice
Lindwall Corporation has reported operating profit of $30 000 and a fixed overhead cost rate is $20 per unit for the current accounting period.Under variable costing,if this company produces 100 more units of inventory,then operating profit:
A) is indeterminable.
B) will increase by $2000.
C) will not be affected.
D) will increase by $2000 only if the 100 additional units of inventory are sold.
Correct Answer:
Verified
Correct Answer:
Verified
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