Favaz Began Business at the Start of This Year and Had

Multiple Choice

Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000.The company sells its units for $45 each.Additional data follow: There were no variances. The income (loss) under absorption costing is:

A) $(7,500) .
B) $9,000.
C) $15,000.
D) $18,000.
E) None of the answers is correct.