Use the following information to answer the following Questions
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow.
-The income (loss) under absorption costing is:
A) $(7,500) .
B) $9,000.
C) $15,000.
D) $18,000.
E) None of the answers is correct.
Correct Answer:
Verified
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