Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $8; fixed manufacturing costs, $56,000; variable selling and administrative costs per unit, $3; and fixed selling and administrative costs, $204,000. The company sells its units for $46 each. Additional data follow.

Planned production in units10,000Actual production in units10,000Number of units sold7,500

There were no variances. The income (loss) under absorption costing is:

Multiple Choice

None of the answers is correct.

$13,500.

$(6,500).

$2,500.

$16,500.