1. a) Green Company sells its product for $10400 per unit. Variable costs per unit are: manufacturing, $5900; and selling and administrative, $130. Fixed costs are: $26400 manufacturing overhead, and $36400 selling and administrative. There was no beginning inventory at 1/1/18. Production was 24 units per year in 20182020. Sales were 24 units in 2018, 20 units in 2019, and 28 units in 2020. Income under absorption costing for 2020 is

A

$50040.

B

$55940.

C

$55160.

D

$59560.

b) Green Company sells its product for $10900 per unit. Variable costs per unit are: manufacturing, $6500; and selling and administrative, $135. Fixed costs are: $47600 manufacturing overhead, and $57600 selling and administrative. There was no beginning inventory at 1/1/18. Production was 34 units per year in 20182020. Sales were 34 units in 2018, 30 units in 2019, and 38 units in 2020. Income under variable costing for 2019 is

A

$22750.

B

$28350.

C

$32400.

D

$51100.