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50. King Company produces a single product. During March, the company had net operating income under absorption costing that was $3,500 lower than under variable costing. The company sold 7,000 units in March, and its variable costs were $7 per unit, of which $3 was variable selling expense. If fixed manufacturing overhead was $2 per unit under absorption costing, then how many units did the company produce during March? A) 5,250 units B) 8,750 units C) 6,500 units D) 6,125 units 51. Johnson Company produces a single product. Last year, the company had 25,000 units in its ending inventory. Johnson's variable production costs were $10 per unit and fixed manufacturing overhead costs were $5 per unit. The company's net operating income last year was $10,000 higher under variable costing than it was under absorption costing. Given these facts, the number of units of product in beginning inventory last year must have been: A) 24,000 units B) 27,000 units C) 23,000 units D) 24,333 units 53. A company that produces a single product had a net operating income of $85,500 using variable costing and a net operating income of $90,000 using absorption costing. Total fixed manufacturing overhead was $150,000, and production was 100,000 units. Between the beginning and the end of the year, the inventory level: A) increased by 4,500 units B) decreased by 4,500 units C) increased by 3,000 units D) decreased by 3,000 units 54. Olympia Company produces a single product. Last year, the company had a net operating income of $92,000 using absorption costing and a net operating income of $98,600 using variable costing. If the fixed manufacturing overhead cost was $3.00 per unit for the last two years, and if production was 18,000 units, then sales in units last year were: A) 24,600 B) 20,200 C) 15,800 D) 15,000 55. Welk Company produces a single product. Last year, the company had 16,000 units in its beginning inventory. During the year, the company's variable production costs were $6 per unit and its fixed manufacturing overhead costs were $4 per unit. The company's net operating income for the year was $24,000 higher under absorption costing than it was under variable costing. Given these facts, the number of units in the ending inventory must have been:

A) 22,000 units B) 10,000 units C) 6,000 units D) 4,000 units