Albany Inc., planned and actually manufactured 240,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was

$24 per unit produced. Variable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $720,000.

Planned and actual fixed operating (nonmanufacturing) costs totaled $380,000. Albany sold 120,000 units of product at $45 per unit.

Albany's 2017 operating income using variable costing is (a)$940,000, (b)$580,000, (c) $220,000, (d) $600,000, or (e) none of these. Show supporting calculations.

Prepare Albany's 2017 Operating Income using Variable Costing. Problem E9-26