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Question 1 2 points Save Answer A firm has no beginning finished goods inventory. The firm produced 40,000 units and sold 35,000 units. The fixed manufacturing overhead cost is $5 per unit and the fixed selling and administrative expense is $3 per unit. The difference in net operating income between variable costing and absorption costing is: Absorption costing income is greater than variable costing income by $25,000. O Absorption costing income is greater than variable costing income by $40,000. O Absorption costing income is lower than variable costing income by $25,000. Absorption costing income lower than variable costing income by $40,000. Caro Corporation has two divisions, Eastern and Western. The following information was taken from last year's income statement segmented by division: Total Company Eastern Western Sales S 5,800,000 $ 3,580,000 $ 2,220,000 Contribution margin S 2,550,000 $ 1,590,000 S 960,000 Divisional segment margin $ 1,390,000 $ 1,060,000 $ 330,000 Net operating income last year for Caro Corporation was $750,000. In last year's income statement segmented by division, what were Caro's total common fixed expenses? O $2,200,000 O $1,970,000 O $640,000 O $1,160,000 Save Answer A firm produced 5,000 units and sold 4,000 units. The variable manufacturing cost is $20 per unit and the variable selling and administrative expense is $10 per unit. What is the cost of goods sold under variable costing? O $150,000 O $120,000 O $80,000 O $100,000