Question - The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product:

Units in beginning inventory 0

Units produced 20,000

Units sold 19,000

Selling price per unit $100.00

Variable costs per unit:

Direct materials $12.00

Direct labor $25.00

Variable manufacturing overhead $3.00

Variable selling and administrative $2.00

Fixed expenses per year:

Fixed manufacturing overhead $500,000

Fixed selling and administrative $600,000

What was the absorption costing net operating income last year?

12,000

57,000

27,000