Red and White Company reported the following monthly data: Units produced 2,500 units Sales price $ 30 per unit Direct materials $ 2 per unit Direct labor $ 3 per unit Variable overhead $ 4 per unit Fixed overhead $ 8,500 in total

What is Red and White's net income under absorption costing if 1,030 units are sold and selling and administrative expenses are $14,500?

• ($1,370)

• ($3,500)

• $3,628

• $7,130

• $13,130