Last Year, Craft Company Had a Net Operating Income of £80,000

Multiple Choice

Last year, Craft Company had a net operating income of £80,000 using absorption costing and £74,500 using variable costing. The fixed manufacturing overhead cost has been £5 per unit for the last three years. If 21,500 units were produced last year, then sales last year were

A) 16,000 units.
B) 20,400 units.
C) 22,600 units.
D) 27,000 units.