Question - The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product:
Units in beginning inventory 0
Units produced 20,000
Units sold 19,000
Selling price per unit $100.00
Variable costs per unit:
Direct materials $12.00
Direct labor $25.00
Variable manufacturing overhead $3.00
Variable selling and administrative $2.00
Fixed expenses per year:
Fixed manufacturing overhead $500,000
Fixed selling and administrative $600,000
What was the absorption costing net operating income last year?
12,000
57,000
27,000