Jeter corporation had net income of $212,000 based on variable costing. beginning and ending inventories were 6,000 units and 10,000 units, respectively. assume the fixed overhead per unit was $4 for both the beginning and ending inventory. what is net income under absorption costing?

The answer is "$228,000".

net income of based on variable costing = $212,000

beginning and ending inventories were 6,000 units and 10,000 units

fixed overhead per unit = $4

This is how we calculate the net income under absorption costing;

$212,000 + (10,000 units * $4) - (6,000 * $4)

= $228,000