[The following information applies to the questions displayed below.] Red and White Company reported the following monthly data:Units produced 2,000unitsSales price$25per unitDirect materials$1per unitDirect labor$2per unitVariable overhead$3per unitFixed overhead$8,000in totalWhat 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. $10,620
C. $(2,000)
D. $2,700
E. $6,620
Answer: D
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