The operating income of Jutox Inc. is $40,000 for March using both variable costing and absorption costing. Which of the following statements must be true of Jutox for the above statement to be true?
A) The opening inventory of March was higher than the ending inventory.
B) The units produced by Jutox are more than the units sold in March.
C) The company's degree of operating leverage is below 1.
D) The beginning and ending inventories of the company were zero.
Correct Answer:
Verified
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