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Find what income under absorption costing is

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Question 1: Green Company sells its product for $10800 per unit. Variable costs per unit are: manufacturing, $5000; and selling and administrative, $120. Fixed costs are: $33600 manufacturing overhead, and $43600 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: $36400.

Option 2: $42000.

Option 3: $44400.

Option 4: $78400.

Reference no: EM132520530

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