Raymond Company Reported the Following Units of Production and Sales

Multiple Choice

Raymond Company reported the following units of production and sales for June and July:
Net income under absorption costing for June was $40,000; net income under variable costing for July was $50,000. Fixed manufacturing costs were $600,000 for each month.
-Refer to the Figure.What was the net income for July using absorption costing?

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