Answer:
$230,000
Explanation:
Calculation for what the company's absorption-costing income would be:
First step is to calculate the Fixed manufacturing per unit
Fixed manufacturing per unit = $240,000 ÷ 40,000
Fixed manufacturing per unit= $6
Second step is to calculate the per units cost using this formula
Per Unit cost = Sales − Variable costs − Fixed OH
Let plug in the formula
Per Unit cost = $42 − $19 − $7 − $6 = $10 × 37,000
Per Unit cost = $370,000
Now let calculate the what the company's absorption-costing income would be
Absorption-costing=$370,000 − $140,000
Absorption-costing= $230,000
Therefore the company's absorption-costing income would be:$230,000
