Compute the net income under absorption costing

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Reference no: EM133051717

Question - Red and White Company reported the following monthly data:

Units produced 2,000 units

Sales price $25 per unit

Direct materials $1 per unit

Direct labor $2 per unit

Variable overhead $3 per unit

Fixed overhead $8,000 in total

Given Advanced Company's data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under absorption costing.

Reference no: EM133051717

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