5. Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current Ta year. During this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for this year is shown in the following table Production costs Direct materials Direct labor Variable overhead Fixed overhead $.80 per unit S.70 per unit $500,000 in tota $450,000 in total Non-production costs Variable selling and administrative Fixed selling and administrative $30,000 in total $490,000 in total Given this information, which of the following is true? A. Net income under variable costing will exceed net income under absorption costing by $50,000. B. Net income under absorption costing will exceed net income under variable costing by $50,000 C. Net income will be the same under both absorption and variable costing. D. Net income under variable costing will exceed net income under absorption costing by $60,000. E. Net income under absorption costing will exceed net income under variable costing by $60,000. 6. Sea Company reports the following information regarding its production cost. Units produced Direct labor Direct materials Variable overhead Fixed overhead Units sold 42,000 units $35 per unit $28 per unit $17 per unit $105,000 in total 35000 Compute production cost per unit under variable costing (VC) and absorption costing (AC) VC A. $80.00 B. $82.50 C. $80.00 $82.50 D. $63.00 E. $80.00$80.00 $83.00 $82.50 $66.00 Assume a company sells a given product for $12 per unit. How many units must be sold to break even if variable selling costs are $0.50 per unit, variable production costs are $3.50 per unit, and total fixed costs are $4,500,000? A. 281,250 units. B. 391,305 units. C. 529,412 units. D. 562,500 units. E. 375,000 units. 7. A. A per unit cost that is constant at all production levels is a variable cost per unit. B. Reported income under variable costing is affected by production level changes C. A per unit cost that is constant at all production levels is a fixed cost per unit D. Reported income under absorption costing is not affected by production level changes. E. A cost that is constant over all levels of production is a variable cost. 8. Which of the following statements is true