“45. During 19×5, Craft Company had a net income of $80,000 using absorption costing and $74,500 using variable costing. The fixed overhead application rate has been $5 per unit for the last three years. If 21,500 units were produced during 19×5, then sales in units for 19×5 were a. 16,000 units. b. 20,400 units. c. 22,600 units. d. 27,000 units.”,”2Difference in Net Income = (Diff in Production and Sales Units x Fixed Overhead Rate per unit $5,500 = ????? x 5 5,500/5 = 1,100 unitsSo …………… 21,500 units – 1,100 units = 20

“45. During 19×5, Craft Company had a net income of $80,000 using absorption costing and $74,500 using variable costing. The fixed overhead application rate has been $5 per unit for the last three years. If 21,500 units were produced during 19×5, then sales in units for 19×5 were a. 16,000 units. b. 20,400 units. c. 22,600 units. d. 27,000 units.”,”2Difference in Net Income = (Diff in Production and Sales Units x Fixed Overhead Rate per unit $5,500 = ????? x 5 5,500/5 = 1,100 unitsSo …………… 21,500 units – 1,100 units = 20

400 units sold.”