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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

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 profit under absorption costs if 980 units are sold and selling and administrative expenses are $12,000?

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