What is the effect on operating income


Question: During 2025, inventory increased by 9000 units. The following information for the company is available: Variable Fixed Manufacturing costs per unit $12.00 $6.00 Operating costs (variable is per unit) $4.00 $12000 If the company uses absorption costing rather than variable costing, the effect on operating income would be a O $66000 decrease. O $54000 increase. O $54000 decrease. O $66000 increase.

 

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Accounting Basics: What is the effect on operating income
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