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During the last year, Bush Company had net income under absorption costing that was $5,500 lower than its income under variable costing. The company sold 9,000 units during the year, and its variable costs were $10 per unit, of which $6 was variable selling expense. If fixed production cost is $5 per unit under absorption costing every year, then how many units did the company produce during the year?

a. 7,625 units.

b. 8,450 units.

c. 10,100 units.

d. 7,900 units.

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Accounting Basics, Accounting

Category:- Accounting Basics
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