Beginning inventory of finished goods 0

Units produced (no work in process) 22,000

Units sold 18,000

Units in ending inventory of finished goods 4,000

Sales price $55 per unit

Variable manufacturing costs $25 per unit manufactured

Variable selling and administrative expenses $7 per unit sold

Fixed manufacturing costs for the year $110,000

Fixed selling and administrative expenses for the year $124,000

Using the absorption method, the net income for year is:

$200,000

$180,000

$170,000

$16,000