During the year, Xenoc produces 1,000 pairs of speakers and sells 900 pairs. What is net income using variable costing?

Xenoc, Inc. produces stereo speakers. The selling price per pair of speakers is \(\$ 1,500\).

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Costs involved in production are: Direct material Direct labor Variable manufacturing overhead $100 150 50 Total variable manufacturing costs per unit $300 Fixed manufacturing overhead per year $600,000 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $200,000 Fixed administrative costs per year $100,000