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Last Year, Racine Company's Income Under Absorption Costing Was $15,000

Question 74

Multiple Choice

Last year, Racine Company's income under absorption costing was $15,000 lower than its income under variable costing. The company had total production costs of $24 per unit, of which $14 was variable costs. No selling expenses were incurred this year. Racine sold 25,000 units during the year. How many units were produced during the year?


A) 25,000
B) 23,500
C) 24,000
D) 26,500

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