vanhoe Company sells its product for $10400 per unit. Variable costs per unit are: manufacturing, $5000; and selling and administrative, $135. Fixed costs are: $50400 manufacturing overhead, and $60400 selling and administrative. There was no beginning inventory at 1/1/20. Production was 36 units per year in 2020–2022. Sales were 36 units in 2020, 32 units in 2021, and 40 units in 2022. Income under absorption costing for 2022 is $99800. $88280. $93280. $94200.

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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Ivanhoe Company sells its product for $10400 per unit. Variable costs per unit are: manufacturing, $5000; and selling and administrative, $135. Fixed costs are: $50400 manufacturing overhead, and $60400 selling and administrative. There was no beginning inventory at 1/1/20. Production was 36 units per year in 2020–2022. Sales were 36 units in 2020, 32 units in 2021, and 40 units in 2022.

Income under absorption costing for 2022 is
$99800.
$88280.
$93280.
$94200.
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