Ben Company Produces a Single Product

Multiple Choice

Ben Company produces a single product. Last year, the company's net operating income under absorption costing was $4,400 lower than under variable costing. The company sold 8,000 units during the year, and its variable costs were $8 per unit, of which $3 was variable selling expense. Fixed manufacturing overhead was $1 per unit in beginning inventory under absorption costing. How many units did the company produce during the year?

A) 12,400 units
B) 3,600 units
C) 7,120 units
D) 7,450 units