Swifton Corporation Produces a Single Product

Multiple Choice

Swifton Corporation produces a single product. Last year, the company had net operating income of $40,000 using variable costing. Beginning and ending inventories were 22,000 and 27,000 units, respectively. If the fixed manufacturing overhead cost was $3 per unit both last year and this year, what was the income using absorption costing?

A) $15,000
B) $25,000
C) $40,000
D) $55,000