Oliveira''s operating income under absorption costing will be:
In its first month of operations, Oliveira Corporation produced 100,000 units. 80,000 units were sold. The manufacturing cost per unit was as follows:

A) Lower than variable costing by $1,000,000
B) Higher than variable costing by $600,000
C) Higher than variable costing by $1,000,000
D) The same as variable costing

Question

Oliveira''s operating income under absorption costing will be:
In its first month of operations, Oliveira Corporation produced 100,000 units. 80,000 units were sold. The manufacturing cost per unit was as follows:
 
A) Lower than variable costing by $1,000,000 
B) Higher than variable costing by $600,000 
C) Higher than variable costing by $1,000,000 
D) The same as variable costing

Quizplus · Accepted Answer

The Answer of Oliveira''s operating income under absorption costing will be:
In its first month of operations, Oliveira Corporation produced 100,000 units. 80,000 units were sold. The manufacturing cost per unit was as follows:
 
A) Lower than variable costing by $1,000,000 
B) Higher than variable costing by $600,000 
C) Higher than variable costing by $1,000,000 
D) The same as variable costing

Oliveira''s Operating Income Under Absorption Costing Will Be