I need detailed help with steps on how to solve , and guidance as to where each number comes from :
In 2006 Voest's income under absorption costing was $15,000 higher than its income under variable costing. During the year the company produced 20,000 units. If total variable production costs were $80,000 and fixed manufacturing overhead was $40,000, how many units did the company sell in 2006 ?
A) 27,500 B) 12,500 C) 7500 D) 5000 E) None