Willis Company Had a Net Operating Income of £75,000 Using

Multiple Choice

Willis Company had a net operating income of £75,000 using variable costing and a net operating income of £57,000 using absorption costing. Variable production costs were £15 per unit. Total fixed manufacturing overhead was £120,000 and 10,000 units were produced. During the year, the stock level

A) increased by 1,200 units.
B) increased by 1,500 units.
C) decreased by 1,500 units.
D) decreased by 1,200 units.