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Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 111 Units in

Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $ 111
Units in beginning inventory 0
Units produced 7,500
Units sold 7,200
Units in ending inventory 300

Variable costs per unit:
Direct materials $ 24
Direct labor $ 34
Variable manufacturing overhead $ 1
Variable selling and administrative expense $ 5
Fixed costs:
Fixed manufacturing overhead $ 217,500
Fixed selling and administrative expense $ 115,200

What is the net operating income for the month under absorption costing?

$8,700

$5,700

$14,400

$(12,000)

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