Kluber, Inc. had net income of $900,000 based on variable costing. Beginning and ending inventories were 55,000 units and 52,000 units, respectively. Assume the fixed overhead per unit was $1.25 for both the beginning and ending inventory. What is net income under absorption costing?
A. $900,000
B. $966,875
C. $903,750
D. $833,125
E. $896,250
Answer: E
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