DunnDunn

Company incurred the following costs while producing 480 units: direct materials, $9 per unit; direct labor, $22 per unit; variable manufacturing overhead, $16 per unit; total fixed manufacturing overhead costs, $7,680; variable selling and administrative costs, $3 per unit; total fixed selling and administrative costs, $4,320.

There are no beginning inventories.

What is the operating income using variable costing if 420 units are sold for $160

each?