Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500. There are no beggening inventiries.

What is the operating income using absorotion costing if 500 units are sold for $100 each?

Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total foced manufacturing overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total foxed selling and administrative costs, $7,500. There are no boginning inventories. What is the operating income using absorption costing 1500 units are sold for $100 each? A. $500 B. $2,500 C. $2,750 D. $5,000