Roberts Company Produces a Single Product

Multiple Choice

Roberts Company produces a single product.This year,the company's net operating income under absorption costing was $2,000 lower than under variable costing.The company sold 8,000 units during the year,and its variable costs were $8 per unit,of which $2 was variable selling and administrative expense.If production cost was $10 per unit under absorption costing,then how many units did the company produce during the year? (The company produced the same number of units last year. )

A) 7,500 units
B) 7,000 units
C) 9,000 units
D) 8,500 units