What is Red and White's net income under absorption costing if 980 units are sold and selling and administrative expenses are $12,000?
A)$(1,380)
B)$(2,000)
C)$2,700
D)$6,620
E)$10,620

Question

Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs (fixed and variable) in the cost of a product. To find net income, subtract total costs (including selling and administrative expenses) from total sales revenue.

What Is Red and White's Net Income Under Absorption Costing