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Moneka reported $55,000 of income for the year by using absorption costing. The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 16,000 units. Standard variable manufacturing costs were $22 per unit, and total budgeted fixed manufacturing overhead was $50,000. If there were no variances, income under variable costing would be:
$45,000.
$55,000.
$65,000.
$105,000.
$5,000.
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