The level of inventory of a manufactured product has increased by 9,197 units during a period. The following data are also available:
Unit manufacturing costs of the period: variable - $10; fixed - $8
Unit operating expenses of the period: variable - $3; fixed - $3
What would be the effect on income from operations if absorption costing is used rather than variable costing?
I do not want the straight answer. I would like to know HOW you got that answer.