advertising? Why CP 20-6 Absorption costing Group Project Craig Company is a family-owned business in which you own 20% of the common stock and your brothers and sisters own the remaining shares. The employment contract of Craig's new president, Ajay Pinder, stipulates a base salary of $140,000 per year plus 10% of income from operations in excess of $670,000. Craig uses the absorption costing method of reporting income from operations, which has averaged approximately $670,000 for the past several years Sales for. 2016, Pinder's first year as president of Craig Company, are estimated at 44,000 units at a selling price of $106 per unit. To maximize the use of Craig's productive capacity, Pinder has decided to manufacture 55,000 units, rather than the 44,000 units of estimated sales. The beginning inventory at January 1, 2016, is insignificant in amount, and the manufacturing costs and selling and administrative expenses for the production of 44,000 and 55,000 units are as follows: (Continued) advertising? Why CP 20-6 Absorption costing Group Project Craig Company is a family-owned business in which you own 20% of the common stock and your brothers and sisters own the remaining shares. The employment contract of Craig's new president, Ajay Pinder, stipulates a base salary of $140,000 per year plus 10% of income from operations in excess of $670,000. Craig uses the absorption costing method of reporting income from operations, which has averaged approximately $670,000 for the past several years Sales for. 2016, Pinder's first year as president of Craig Company, are estimated at 44,000 units at a selling price of $106 per unit. To maximize the use of Craig's productive capacity, Pinder has decided to manufacture 55,000 units, rather than the 44,000 units of estimated sales. The beginning inventory at January 1, 2016, is insignificant in amount, and the manufacturing costs and selling and administrative expenses for the production of 44,000 and 55,000 units are as follows: (Continued)