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Last year, Ben Company's operating income under absorption costing was $4,000 lower than its operating...

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Accounting

Last year, Ben Company's operating income under absorption costing was $4,000 lower than its operating income under variable costing. The company sold 7,000 units during the year, and its variable costs were $10 per unit, of which $2 was variable selling expense. Fixed manufacturing overhead was $3 per unit in beginning inventory under absorption costing. Ending inventory was zero. How many units did the company produce during the year?

a.

3,500

b.

5,000

c.

5,667

d.

6,600

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