Craft Corporation 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

Question

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The Answer of Craft Corporation 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

Craft Corporation Produces a Single Product