Question: Bacon Mfg . has provided the following information. table [ [ , 2 0 2 0 , 2 0 2 1 ] , [

Bacon Mfg. has provided the following information.
\table[[,2020,2021],[Units produced,1,000,1,000],[Units sold,825,875],[Selling price per unit,$20.00,$20.00],[Total Manufacturing Costs:],[Variable,2,000,2,000],[Fixed,3,000,3,000],[Total Selling and Administration],[Variable,825,875],[Fixed,3,000,3,000]]
What is the difference in operating income between absorption and variable costing for 2021?
a. Absorption income is $1,250 greater than variable income. (correct answer)
b. Absorption income is $1,250 less than variable income.
c. Absorption income is $375 greater than variable income.
d. Absorption income is $2,125 greater than variable income.
Bacon Mfg . has provided the following

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