Cornell Products
Cornell Products Has the Following Cost Information Available

Multiple Choice

Cornell Products
Cornell Products has the following cost information available for 2009:
$$\begin{array} { l r } \text { Direct materials } & \$ 1.00 \text { per unit } \\\text { Direct labour } & \$ 2.00 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 1.50 \text { per unit } \\\text { Variable selling and administrative costs } & \$ 50 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 30000 \\\text { Fixed selling and administrative costs } & \$ 25000\end{array}$$
During 2009, Cornell produced 6000 units out of which 5400 units were sold for $20 each.
-What is net income under absorption costing?

A) $23 000
B) $29 000
C) $26 000
D) $35 000