Question
Loki Inc. manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Selling price per unit
Loki Inc. manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Selling price per unit $200 Variable costs per unit: Manufacturing: Direct materials $68 Direct labor $40 Variable manufacturing overhead $11 Variable selling and administrative expense $5 Fixed costs per year: Fixed manufacturing overhead $49,000 Selling and administrative expense $110,000 Year 1 2 Production (units) 5,000 4,700 Sales (units) 4,600 5,100 Q.: What is net operating income under absorption costing in Year 2? (Do not round intermediate calculations. Round the final answer to the nearest dollars.)
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