Based on variable costing, the income before income taxes for the year was $3,008,000 $2,968,000 $2,988,000 $2,948,000 Here is the problem on this page: 5 points CPA Company has the following standard costs associated with the manufacture and sale of one of its products: Direct material Direct labor Variable manufacturing overhead Variable selling expenses Fixed manufacturing overhead Fixed SG&A expense $15.00 per unit $7.50 per unit $9.00 per unit $5.00 per unit $1,000,000 (based on normal capacity of 50,000 units) $300,000 per year During 2001, its first year of operations, Young manufactured 51,000 units and sold 48,000. The selling price per unit was $125. The standard cost of goods sold under absorption costing would be 5 points $1,512,000 $2,452,000 $1,492,000 $2,472,000 Based on absorption costing, the income before income taxes for the year was 5 points $3,008,000 $2,968,000 $2,948,000 $2,988,000