Pharoah Company sells its product for $12600

per unit. Variable costs per unit are: manufacturing, $6400; and selling and administrative, $125. Fixed costs are: $36000 manufacturing overhead, and $46000 selling and administrative. There was no beginning inventory at 1/1/20. Production was 24 units per year in 2020-2022. Sales were 24 units in 2020, 20 units in 2021, and 28 units in 2022.

Income under absorption costing for 2021 is

$48000.

$39500.

$85000.

$45500.