Leeds Electronics, Which Has Only One Product, Has Provided the Following

Multiple Choice

Leeds Electronics, which has only one product, has provided the following data concerning its most recent month of operations:
-The market price for direct materials was lower last month. The normal cost of direct materials is £26.
What is the net operating income for the month under absorption costing if the cost of direct material is £26?

A) £(8,700)
B) £0
C) £12,400
D) (£1,000)