Reference no: EM132576597

Aaker Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price  $99

Units in beginning inventory 0

Units produced 6,300

Units sold 6,000

Units in ending inventory 300

Variable costs per unit:

Direct materials $12

Direct labour $42

Variable manufacturing overhead $6

Variable selling and administrative $6

Fixed costs:

Fixed manufacturing overhead $170,100

Fixed selling and administrative $24,000

Question 1: What is the operating income (loss) for the month under absorption costing?

Option 1: $12,000.

Option 2: $3,900.

Option 3: $8,100.

Option 4: ($14,100).