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DonovanDonovan Company incurred the following costs while producing 5 0 0 5 0 0 units: direct materials, $ 1 0 $ 1 0 per unit;

DonovanDonovan
Company incurred the following costs while producing
500500
units: direct materials,
$ 10$10
per unit; direct labor,
$ 25$25
per unit; variable manufacturing overhead,
$ 15$15
per unit; total fixed manufacturing overhead costs,
$ 10 comma 000$10,000;
variable selling and administrative costs,
$ 5$5
per unit; total fixed selling and administrative costs,
$ 7 comma 500$7,500.
There are no beginning inventories.
What is the operating income using variable costing if
450450
units are sold for
$ 100$100
each?
Question content area bottom
Part 1
A.$ 2 comma 750
$ 2 comma 750$2,750
B.$ 5 comma 000
$ 5 comma 000$5,000
C.$ 500
$ 500$500
D.$ 2 comma 500
$ 2 comma 500

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