Question

Petra, Inc. has collected the following data.​ (There are no beginning​ inventories.):

Units produced	460460	units
Units sold	460460	units
Sales price	$ 220$220	per unit
Direct materials	$ 30$30	per unit
Direct labor	$ 35$35	per unit
Variable manufacturing overhead	$ 10$10	per unit
Fixed manufacturing overhead	$ 22 comma 000$22,000	per year
Variable selling and administrative costs	$ 20$20	per unit
Fixed selling and administrative costs	$ 10 comma 000$10,000	per year

What is the operating income using absorption​ costing? (Round any intermediate calculations to the nearest cent and your final answer to the nearest​ dollar.)

Answer 1