Company A sells a single product for $$20$ per unit.

Additional data for the company's first month of

operations are as follows:

During the month, Company A produced $8,000$ units. At

month end, $500$ units remained in ending inventory. Using

absorption costing, how much is the net operating income

for the month?

Hint: Use the format shown in Appendix $21$A of the text.

$$6,250$

$$6,900$

$$7,125$

$$7,480$