12 Richmond, Inc. uses absorption costing for external reporting and variable costing for its internal analysis. For its first year of operations, the company showed the following: Production $ Selling/admin 30,000 45,000 Total Variable costs 272,000 $ Total Fixed costs $ 180,000 $ Units produced 30,000 units If the company's reported net operating income (NOI) under absorption costing was $21,000 higher than its internal NOI using variable costing, how many units were sold during the period? 26,500 units 27,200 units A. В. С. 32,800 units 33,500 units None of the above D. Е.

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Chapter6: Proudction Costs
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12
Richmond, Inc. uses absorption costing for external reporting and variable costing for its internal analysis. For its first year of operations, the
company showed the following:
Production
Selling/admin
30,000
45,000
Total Variable costs
$
272,000 $
Total Fixed costs
$
180,000 $
30,000 units
Units produced
If the company's reported net operating income (NOI) under absorption costing was $21,000 higher than its internal NOI using variable
costing, how many units were sold during the period?
26,500 units
27,200 units
A.
В.
C.
32,800 units
D.
33,500 units
Е.
None of the above
Transcribed Image Text:12 Richmond, Inc. uses absorption costing for external reporting and variable costing for its internal analysis. For its first year of operations, the company showed the following: Production Selling/admin 30,000 45,000 Total Variable costs $ 272,000 $ Total Fixed costs $ 180,000 $ 30,000 units Units produced If the company's reported net operating income (NOI) under absorption costing was $21,000 higher than its internal NOI using variable costing, how many units were sold during the period? 26,500 units 27,200 units A. В. C. 32,800 units D. 33,500 units Е. None of the above
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