Figure 8-5. Sanders Company has the following information for last year:

Selling price	$190 per unit
Variable production costs	$52 per unit produced
Variable selling and admin. expenses	$18 per unit sold
Fixed production costs	$240,000
Fixed selling and admin. expenses	$180,000
Units produced	12,000
Units sold	7,000

There were no beginning inventories.

1. Refer to Figure 8-5. What is the value of ending inventory for Sanders using the absorption costing method?

	a.	$360,000
	b.	$280,000
	c.	$220,000
	d.	$380,000

2. Refer to Figure 8-5. What is the income for Sanders using the absorption costing method?

	a.	$520,000
	b.	$480,000
	c.	$1,200,000
	d.	$500,000

3. Refer to Figure 8-5. What is the cost of ending inventory for Sanders using the variable costing method?

	a.	$300,000
	b.	$280,000
	c.	$120,000
	d.	$260,000

4. Refer to Figure 8-5. What is the income for Sanders using the variable costing method?

	a.	$420,000
	b.	$480,000
	c.	$520,000
	d.	$500,000