Alvin Inc. planned and actually manufactured 200,000 units of its single product in 2014, its first year of operations. Variable manufacturing costs were $30 per unit of product produced. Planned and actual fixed manufacturing costs were $600,000, and fixed marketing and administrative costs totaled $400,000 in 2014. Alvin sold 120,000 units of product in 2014 at a selling price of $40 per unit.

What is Alvins 2014 operating income using variable costing?

The format of your answer must be as follows:

Alvins 2014 operating income using variable costing is $10.00 (this is not the correct answer)

Chapter 9 - BB exercise No 4 - Practice Question no 2 (3 points)

Using the data from question 1, answer the following question:

What is Alvins 2014 operating income using absorption costing?

The format of your answer must be as follows:

Alvins 2014 operating income using absorption costing is $10.00 (this is not the correct answer)