Problem 33

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,600 units): If 2,000 units remain unsold at the end of the month and sales total $1,003,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a. $71,075 b. $143,875 c. $153,714 d. $80,914