Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.

Units produced this year39,000unitsUnits sold this year23,400unitsDirect materials$23per unitDirect labor$25per unitVariable overhead$3per unitFixed overhead$195,000in total

Given Advanced Company's data, and the knowledge that the product is sold for $75 per unit and operating expenses are $340,000, compute the net income under absorption costing.

Multiple Choice

• $78,000
• $26,600
• $278,460
• $104,600
• $221,600