inventory increased by 3000 units during april. How much greater will flint enterprises income be under abosprtion costing than under variable costing

b. $110,000

Explanation:

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Given, Inventory Increased by 5,000 Units . Units Sold decreases by 5,000 Units  will equals to = 20,000 - 5,000 Units= 15,000 Units

Particulars                                                               Amount

Sales                                                                        $3,450,000

(15,000 Units *$230)

Less: Variable Cost                                                 $1,380,000

         (15,000 Units * $92)

Less: Variable Selling Expenses                           $81,000

Less: Fixed General and Administrative Costs    $102,000    

Income Under Absorption costing                      $1,887,000

Particulars                                                               Amount

Sales                                                                      $3,450,000

(15,000 Units *$230)  

Less: variable Cost                                                $1,131,000

Less: Fixed manufacturing Overhead                $440,000

Less: Fixed General and Administrative Costs   $102,000

Income Under Variable costing                          $1,777,000

Workings

Variable cost = (15,000 Units x ($ 30 + $ 25 + $ 15 + ($ 81,000 / 15,000)

Variable cost = $1,131,000

The Difference in Net Income  = $ 1,887,000 - $1,777,000= $110,000

D. Monthly payments