Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price$111 Units in beginning inventory 0Units produced 7,500Units sold 7,200Units in ending inventory 300 Variable costs per unit: Direct materials$24Direct labor$34Variable manufacturing overhead$1Variable selling and administrative expense$5Fixed costs: Fixed manufacturing overhead$217,500Fixed selling and administrative expense$115,200What is the net operating income for the month under absorption costing?
A. $5,700
B. $8,700
C. $14,400
D. $(12,000)
Answer: C
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