Question - Aquamarine Company has the following information for the month of May of the current year:
Selling price $220 per unit
Variable production costs $90 per unit produced
Variable selling and admin. Expenses $25 per unit sold
Fixed production costs per unit $52 per unit
Fixed selling and admin. Expenses $350,000
Units produced 12,000 units
Units sold 11,500 units
There were no beginning inventories.
Compute Aquamarine's operating income for the month of May using the absorption-costing method.
$150,000
$609,500
$897,000
$259,500