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Question 1: Green Company sells its product for $11400 per unit. Variable costs per unit are: manufacturing, $5600; and selling and administrative, $140. Fixed costs are: $28800 manufacturing overhead, and $38800 selling and administrative. There was no beginning inventory at 1/1/18. Production was 24 units per year in 2018-2020. Sales were 24 units in 2018, 20 units in 2019, and 28 units in 2020. Income under absorption costing for 2019 is
Option 1: $45600.
Option 2: $50400.
Option 3: $53200.
Option 4: $96000.
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