Red and White Company reported the following monthly data:

Units produced	2,700 units
Sales price	$32 per unit
Direct materials	$2 per unit
Direct labor	$3 per unit
Variable overhead	$4 per unit
Fixed overhead	$8,640 in total

35.

What is Red and White's net income under absorption costing if 1,050 units are sold and operating expenses are $17,000?

$7,150

($5,660)

$3,790

($1,490)

$15,510

36.

What is Red and White's net income under variable costing if 1,050 units are sold and operating expenses are $17,000?

$7,150

$15,510

($1,490)

$3,790

($5,660)