UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

166. Correct answer c. Weisman’s operating income using absorption costing was $15,300

calculated as follows.

Sales (900 x $100) $90,000

COGS [900 x ($30 + $20 + $10 + $5)] 58,500

Variable selling (900 x $12) 10,800

Fixed selling 3,600

Fixed administrative 1,800

Operating income $15,300