Chicago began business at the start of the current year.  The company planned to produce 25,000 units, and actual production conformed to expectations.  Sales totaled 22,000 units at $30 each.

  Costs incurred were:

Fixed manufacturing overhead  $150,000
Fixed selling and administrative cost  100,000
Variable manufacturing cost per unit    8
Variable selling and administrative cost per unit   2


If there were no variances, the company's absorption-costing net income would be?

Answer rating: 100% (QA)

To calculate the absorptioncosting net income we need to take into account both fixed and variable c... View the full answer