Solve the below problem:
Q: The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available:
|
Variable |
Fixed |
| Unit manufacturing costs of the period |
$12.00 |
$6.00 |
| Unit operating expenses of the period |
4.00 |
1.50 |
|
|
|
What would be the effect on income from operations if absorption costing is used rather than variable costing?