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The absorption operating income is

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Reference no: EM13987457

The absorption operating income is:

Beginning inventory in units

0

Units produced

4,800

Units sold

4,000

Sales

$400,000

Material cost (unit level or variable)

$96,000

Variable conversion cost used (Committed)

$48,000

Facility-level or fixed manufacturing cost

$72,000

Indirect operating costs (fixed)

$80,000

  • $120,000
  • $140,000
  • $128,000
  • $112,000
  • $45 per unit x 4,000 units sold 

Reference no: EM13987457

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