Question

Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow.
Planned production in units 10,000
Actual production in units 10,000
Number of units sold 8,500

There were no variances. The net income (loss) under absorption costing is:

a. (7500)
b. 9,000
c. 15,00
d. 18,000
e. Some other amount

Answer 1

Answer:

I think it might be b. 9,000