Perry, Inc. produced 15,000 units during the year. Of these, 12,000 were sold for $50 each. Other Perry, Inc. data are as follows:
Direct materials $8.00 per unit
Direct labor $6.00 per unit
Variable manufacturing overhead $2.00 per unit
Variable selling and administrative costs $1.00 per unit
Fixed manufacturing overhead $75,000
Fixed selling and administrative costs $50,000
Refer to Exhibit 6-8. Calculate Perry's operating profit assuming the company uses absorption costing.
a- $271,000
b- $286,000
c- $396,000
d- $370,000
e- None of the answer choices is correct.