Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units:

	Per Unit					Per Year
Direct materials		$	75
Direct labor		$	50
Variable manufacturing overhead		$	10
Fixed manufacturing overhead						$	300,000

If the companys variable costing net operating income during its first year of operations was $20,000, what was its absorption costing net operating income during its first year of operations?

Multiple Choice

• $(40,000)

• $20,000

• $140,000

• $80,000