How do find out the absorption costing income from operation

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Reference no: EM132582839

Sales (96,000 units)                           $4,440,000

Cost of good sold:

Cost of good manufactured                 $3,120,000

Less ending inventory (24,000 units)        624,000

Cost of good sold                              $2,496,000

Gross profit                                      $1,944,000

Selling and administrative expenses           288,000

Income from operations                         $1,656,000

Assuming that the fixed manufacturing costs were $132,000 and the variable selling and administrative expenses were $115,200.

Question 1: How do find out the absorption costing income from operation and the variable costing income from operations?

Reference no: EM132582839

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