Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $8; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $231,000. The company sells its units for $45 each. Additional data follow:

Planned production in units10,000Actual production in units10,000Number of units sold8,500

There were no variances. The income (loss) under variable costing is:

Multiple Choice

$6,500.

None of the answers is correct.

$12,500.

$15,500.

$(7,500).