The absorption operating income is:
|
Beginning inventory in units
|
0
|
|
Units produced
|
4,800
|
|
Units sold
|
4,000
|
|
Sales
|
$400,000
|
|
Material cost (unit level or variable)
|
$96,000
|
|
Variable conversion cost used (Committed)
|
$48,000
|
|
Facility-level or fixed manufacturing cost
|
$72,000
|
|
Indirect operating costs (fixed)
|
$80,000
|
- $120,000
- $140,000
- $128,000
- $112,000
- $45 per unit x 4,000 units sold