What Is Red and White's Net Income Under Absorption Costing

question 189

Multiple Choice

What is Red and White's net income under absorption costing if 980 units are sold and selling and administrative expenses are $12,000?

• A)$(1,380)
• B)$(2,000)
• C)$2,700
• D)$6,620
• E)$10,620

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Definitions:

Infant

A very young child, especially one newly or recently born, typically referring to a child in the first year of life.

Toddler

A young child, typically aged between one and three years old, who is in the early stages of walking and developing speech.

Insecurely Attached Infants

Infants who exhibit anxiety or avoidant behavior when separated from their caregivers, indicating a lack of secure attachment.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.