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A company produces a single product. Last year, fixed manufacturing overhead was $25,000, variable production costs were $51,000, fixed selling and administration costs were
A company produces a single product. Last year, fixed manufacturing overhead was $25,000, variable production costs were $51,000, fixed selling and administration costs were $15,000, and variable selling administrative expenses were $5,000. There was no beginning inventory. During the year, 3,000 units were produced and 2,400 units were sold at a price of $35 per unit. Under variable costing, net operating income would be:
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Fundamentals of Cost Accounting
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