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Harold corporation just started business in January 2012. They has no beginning inventories. During 2012 they manufactured 12,000 units of product,and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacuturing costs were 24,000 and fixed selling and administrative costs were $6000.What would be the Harold Corporation's net income for 2012 using absortion costing.
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Executive officers within an organization will often feel compelled and tempted to emphasize short-term results-net income for the current year-over long-term success and company survival.
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