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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price
$112
Units in beginning inventory
0
Units produced
5,500
Units sold
5,300
Units in ending inventory
200
Variable costs per unit:
Direct materials
$33
Direct labor
$37
Variable manufacturing overhead
$5
Variable selling and administrative
$6
Fixed costs:
Fixed manufacturing overhead
$71,500
Fixed selling and administrative
$79,500
What is the net operating income for the month under absorption costing?
$2,600
$1,700
$13,300
$15,900
It is not option C.
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