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When unit sales are constant, but the number of units produced fluctuates and everything else...

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Accounting

When unit sales are constant, but the number of units produced fluctuates and everything else remains the same, net operating income under variable costing will:

Multiple Choice

be greater than net operating income under absorption costing.

fluctuate in direct proportion to changes in production.

remain constant.

fluctuate inversely with changes in production.

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