[The following information applies to the questions displayed below.] Red and White Company reported the following monthly data:

Units produced		2,000	units
Sales price	$	25	per unit
Direct materials	$	1	per unit
Direct labor	$	2	per unit
Variable overhead	$	3	per unit
Fixed overhead	$	8,000	in total

What is Red and White's net income under absorption costing if 980 units are sold and selling and administrative expenses are $12,000?

Multiple Choice

• $(1,380)

• $(2,000)

• $2,700

• $6,620

• $10,620