Question: Ideal Manufacturing Companysells its product for $9,000 per unit. Variable costs per unit are: manufacturing, $4,000; and selling and administrative, $125. Fixed costs are: $35,000 manufacturing overhead, and $45,000 selling and administrative. There was no beginning inventory at 01/01/05. Production was 20 units per year in 2005-2007. Sales was 20 units in 2005, 15 units in 2006, and 25 units in 2007.
(1) Income under variable costing for 2006
(2) Income under absorption costing for 2006
(3) Income under variable costing for 2007
(4) Income under absorption costing for 2007