Figure 8-7

Multiple Choice

Figure 8-7. Ramon Company reported the following units of production and sales for June and July 2011:
Income under absorption costing for June was $40,000; income under variable costing for July was $50,000.Fixed costs were $600,000 for each month.
Refer to Figure 8-7.How much was income for July using absorption costing?

A) $50,000
B) $20,000
C) $80,000
D) $40,000