Figure 8-7. Ramon Company reported the following units of production and sales for June and July:

	Units
Month	Produced	Sold
June	100,000	90,000
July	100,000	105,000

Income under absorption costing for June was $40,000; income under variable costing for July was $50,000. Fixed costs were $600,000 for each month.

7. Refer to Figure 8-7. How much was income for July using absorption costing?

	a.	$50,000
	b.	$20,000
	c.	$80,000
	d.	$40,000

8. Refer to Figure 8-7. How much was income for June using variable costing?

	a.	$40,000
	b.	$20,000
	c.	$(40,000)
	d.	$(20,000)