Ramon Company Reported the Following Units of Production and Sales

Multiple Choice

Ramon Company reported the following units of production and sales for June and July: 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.

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How much was income for July using absorption costing?

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