Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $7; fixed manufacturing costs, $56,000; variable selling and administrative costs per unit, $1; and fixed selling and administrative costs, $210,000. The company sells its units for $47 each. Additional data follow:

Planned production in units	10,000
Actual production in units	10,000
Number of units sold	7,500

There were no variances.

The income (loss) under variable costing is:

Multiple Choice

• $(6,500).

• $26,500.

• $37,500.

• $40,500.

• None of the answers is correct.