Craft Company Produces a Single Product

Multiple Choice

Craft Company produces a single product.Last year,the company had a net operating income of $80,000 using absorption costing and $74,500 using variable costing.The fixed manufacturing overhead cost was $5 per unit.There were no beginning inventories.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