What is the operating income using variable costing if 450 units are sold for $100 each?

a. $2,750

b. $5,000

c. $500

d. $2,500

Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed manufacturing overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling and administrative costs, $7,500.
There are no beginning inventories.