Eagle Corporation Manufactures a Picnic Table

Multiple Choice

Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure: In its first year of operations, Eagle produced and sold 10,000 tables. The tables sold for $120 each.
-How would Eagle's absorption costing net operating income have been affected in its first year if 12,000 tables were produced instead of 10,000 and Eagle still sold 10,000 tables?

A) net operating income would not have been affected
B) net operating income would have been $27,000 higher
C) net operating income would have been $31,500 higher
D) net operating income would have been $116,000 lower