Absorption costing income statement problem

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Reference no: EM13128109

A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (5,000 units):
Direct materials $70,000
Direct labor 20,000
Variable factory overhead 10,000
Fixed factory overhead 2,000 $102,000

Operating expenses:

Variable operating expenses $17,000
Fixed operating expenses 1,000 18,000

If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement?

Reference no: EM13128109

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