Allston Products sells a special kind of effects pedal for musical performers. Each unit sells for $20.00. Additional data for the month of April, 2011, are as follows: 
Which of the following statements is true?
A) Absorption costing produces operating income that is $875 higher than variable costing.
B) Absorption costing produces operating income that is $875 lower than variable costing.
C) Absorption costing produces operating income that is $13,125 higher than variable costing.
D) Absorption costing produces operating income that is $13,125 lower than variable costing.
Correct Answer:
Verified
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