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The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product: Units in beginning inventory 0 Units produced
The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product:
Units in beginning inventory
0
Units produced
20,000
Units sold
19,000
Selling price per unit
$100.00
Variable costs per unit:
Direct materials
$12.00
Direct labor
$25.00
Variable manufacturing overhead
$3.00
Variable selling and administrative
$2.00
Fixed expenses per year:
Fixed manufacturing overhead
$500,000
Fixed selling and administrative
$600,000
What was the absorption costing net operating income last year?
12,000
57,000
27,000
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