Company ABC first two years of operations appears below

year 1 Year 2

$6 direct material cost per unit $7

$5. Direct labor cost per unit. $9

$4. Variable overhead cost per unit $ 3.9

$2. Variable selling and admin cost per unit 3

$100000 fixed overhead cost. $120000

50000. Fixed selling and admin cost 60000

20000. Units produced. 40000

40000. Units sold. 55000

33. Selling price per unit. 33

calculate ABC COMPANYS YEAR 2 net income using absorption costing assume company uses a LIFO inventory cost flow assumption