Octagonal Company Has the Following Information for 2016: Selling Price

Octagonal Company has the following information for 2016: Selling price $150 per unit
Variable production costs $40 per unit produced Variable selling and admin. expenses $16 per unit sold Fixed production costs $200,000
Fixed selling and admin. expenses $140,000 Units produced 10,000 units
Units sold 8,000 units
There were no beginning inventories.
What is the net income for Octagonal using the absorption costing method?

A) $600,000
B) $480,000
C) $1,200,000
D) $452,000

Correct Answer:

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