Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are as follows.
- Direct material per unit: $20
- Direct labor per unit: 12
- Variable manufacturing overhead per unit: 10
- Fixed manufacturing overhead per year: $148,500
In addition, the company has fixed selling and administrative costs of $150,000 per year.During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is net income, using full costing?