DeAnne Company produces a single product. The company's variable costing income statement for August appears below:

The company produced 35,000 units in August and the beginning inventory consisted of 8,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.

Under absorption costing, for the month ended August 31, the company would report a: 

A. $20,000 profit

B. $5,000 los

C. $35,000 profit

D. $5,000 profit

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DeAnne Company Income Statement For the month ended August 31 Sales ($15 per unit).. Variable expenses: Variable cost of goods sold.. Variable selling expense Total variable expenses... Contribution margin. Fixed expenses: Fixed manufacturing . Fixed selling and administrative. Total fixed expenses.. Net operating income. $600.000 360,000 80.000 440,000 160,000 105,000 _35.000 140,000 $ 20,000 ......