Nimtrans,Inc Calculate the Gross Profit for August Using Absorption Costing

Multiple Choice

Nimtrans,Inc.reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 900,000 \\\hline \text { Variable Cost of Goods Sold } & 200,000 \\\hline \text { Fixed Cost of Goods Sold } & 45,000 \\\hline \text { Variable Selling and Administrative Costs } & 160,000 \\\hline \text { Fixed Selling and Administrative Costs } & 55,000 \\\hline\end{array}$$ Calculate the gross profit for August using absorption costing.

A) $845,000
B) $740,000
C) $700,000
D) $655,000