4.

Last year, fixed manufacturing overhead costs were $30,000, variable production costs were $45,000, fixed selling and administration costs were $20,000, and variable selling and administrative expenses were $10,000. There was no beginning inventory. During the year, 3,000 units were produced and 2,500 units were sold at a price of $40 per unit. Under variable costing, what would be the operating income (loss)?

Multiple Choice