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The level of inventory of a manufactured product has increased by 7,911 units during a period. the following data are also available:
variable fixed
unit manufacturing costs of the period $12.00 $5.00
unit operating expenses of the period 2.00 2.00
the effect on operating income if absorption costing is used rather than variable costing would be a
a. $55,377 decrease
b. $39,555 increase
c. $55,377 increase
d. $39,555 decrease

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