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In Company LL, the fixed factory overhead per unit is $5 and the fixed selling administration charges are $11. This year, the company produced and sold 100,000 units of product. The company uses the LIFO method of accounting for its inventory.
What would be the difference in income reported by the company if it used variable costing instead of absorption costing?
a. $ 0
b. $ 500,000
c. $1,100,000
d. $1,600,000
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