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S&P Enterprises Sold 10,000 Units of Inventory During a Given

Question 15

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S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of the manufactured product remained unchanged. The manufacturing costs were as follows: S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory of the manufactured product remained unchanged. The manufacturing costs were as follows: Which of the following statements is true? A) Net income will be the same under both variable and absorption costing. B) Net income under variable costing will be $45,000 less than net income under absorption costing. C) Net income under absorption costing will be $40,000 more than under variable costing. D) The difference in net income cannot be determined. Which of the following statements is true?


A) Net income will be the same under both variable and absorption costing.
B) Net income under variable costing will be $45,000 less than net income under absorption costing.
C) Net income under absorption costing will be $40,000 more than under variable costing.
D) The difference in net income cannot be determined.

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