Compute the Pyramids absorption costing income

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Question - Pyramid Printing, Inc., formed in 2015, manufactured 200,000 units of its single product during that year; this amount was also its budgeted volume. Variable manufacturing costs were $30 per unit of product. Actual fixed manufacturing costs were $600,000, which aligned perfectly with budget. Marketing and administrative costs totaled $400,000 per actual results. Pyramids selling price was $40 per unit and it sold 120,000 units during 2015. Compute the Pyramids absorption costing income?

a. $840,000

b. $800,000

c. $440,000

d. $200,000

Reference no: EM132838341

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