[The following information applies to the questions displayed below.] Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During this time, the company produced 60,000 units and sold 40,000 units at a sales price of $600 per unit. Cost information for this year is shown in the following table:Production costs   Direct materials$90per unitDirect labor$75per unitVariable overhead$4per unitFixed overhead$420,000in totalNon-production costs   Variable selling and administrative$80,000in totalFixed selling and administrative$520,000in totalGiven the Galaxy, Inc. data, what is net income using absorption costing?

A. $16,360,000
B. $17,400,000
C. $16,800,000
D. $11,275,000
E. $16,220,000


Answer: A

Business

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