Vegas Company has the following unit costs: Variable manufacturing overhead$25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the operating profit under full absorption costing?
A. $170,000
B. $360,000
C. $240,000
D. $290,000
Answer: A
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