Assume a company has variable manufacturing costs of $20 per unit and total fixed manufacturing overhead per period is $150,000. In its first year of the operations, the company produced 12,500 units and sold 11,000 units and reported variable costing net operating income of $20,000. What is the companys absorption costing net operating income in its first year of operations?

Multiple Choice

• $36,000

• $28,000

• $38,000

• $56,000