Arron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price |
$172 |
| Units in beginning inventory |
0 |
| Units produced |
9,700 |
| Units sold |
9,300 |
| Units in ending inventory |
400 |
| Variable costs per unit: |
|
| Direct materials |
$33 |
| Direct labor |
$75 |
| Variable manufacturing overhead |
$21 |
| Variable selling and administrative |
$25 |
| Fixed costs: |
|
| Fixed manufacturing overhead |
$145,500 |
| Fixed selling and administrative |
$10,300 |
What is the net operating income for the month under absorption costing?
$40,000
$11,600
$17,600
$6,000