Bruce Manufacturing makes and sells a single product. The following costs were incurred during the company's first year of operations.
- Variable Costs
- Direct Materials $9
- Direct Labor $9
- Variable Overhead $5
- Fixed Costs
- Fixed Manufacturing OH $200,000
- Fixed Selling Expenses $130,000
During the year the company produced 25,000 units and sold 20,000 units. The company's selling price is $50 per unit.
Under absorption costing, (GAAP) what would Bruce's Net Income be for this year?