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17. The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are

17. The Browning Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Browning's production activity for the year is:

Sales 125,000 units

Units produced 150,000 units

Units sold 5,000 units

What is the profit under variable costing?

A. $1 250 000

B. $350 000

C. $500 000

D. Insufficient information to determine

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