Lamopole Inc. sells its products for $95 each. The current production level is 90,000 units,...
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Accounting
Lamopole Inc. sells its products for $95 each. The current production level is 90,000 units, although only 57,000 units are anticipated to be sold. The following information was presented by the company in 2020:
Unit manufacturing costs are:
Direct materials
$7
Direct manufacturing labor
$9
Variable manufacturing costs
$15
Total fixed manufacturing costs
$378,000
Marketing expenses
$12 per unit
Marketing expenses
$115,000 per year
Required:
Using the information, prepare an income statement using absorption costing. What is Lamopole Inc.'s operating income (loss) for 2020?
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