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During the current year, Bailey Inc. manufactured 40,000 units

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January 9th, 2018

During the current year, Bailey Inc. manufactured 40,000 units and sold 33,000 units of product. The company produces only one product. The selling price per unit is $40.00, with the following cost structure (assuming the company uses absorption costing):Direct materials $3.00 per unitDirect labour $2.50 per unitVariable manufacturing overhead $0.70 per unitFixed manufacturing overhead $70,000.00Selling commission $1.00 per unitWhich of the following amounts is the net income for the year for Bailey Inc.?a.$969,000.00b.$1,024,650.00c.$1,045,400.00d.$1,057,650.00Show calculation!

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