A company that produces a single product had a net operating income of $85,500 using variable costing and a net operating income of $90,000 using absorption costing. Fixed manufacturing overhead was $1.5 per unit. Between the beginning and the end of the year, the inventory level:

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A company that produces a single product had a net operating income of $85,500
using variable costing and a net operating income of $90,000 using absorption
costing. Fixed manufacturing overhead was $1.5 per unit. Between the beginning
and the end of the year, the inventory level:
increased by 4,500 units
decreased by 4,500 units
Transcribed Image Text:8 A company that produces a single product had a net operating income of $85,500 using variable costing and a net operating income of $90,000 using absorption costing. Fixed manufacturing overhead was $1.5 per unit. Between the beginning and the end of the year, the inventory level: increased by 4,500 units decreased by 4,500 units
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