Question:
Rose Corporation produces a single product. Last year, the company had net operating income of $50,000 using variable costing. Beginning and ending inventories were 13,000 units and 18,000 units, respectively. If the fixed manufacturing overhead cost was $2.00 per unit, what would have been the net operating income using absorption costing?
A) $40,000
B) $50,000
C) $60,000
D) $86,000