Evans Company Produces a Single Product

Multiple Choice

Evans Company produces a single product.During the most recent year,the company had a net operating income of $90,000 using absorption costing and $84,000 using variable costing.The fixed overhead application rate was $6 per unit.There were no beginning inventories.If 22,000 units were produced last year,then sales for last year were:

A) 15,000 units
B) 21,000 units
C) 23,000 units
D) 28,000 units