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Homework: Chapter 6 class assignment_9.30 Save Score: 0 of 1 pt 5 of 5 (2 complete) HW Score: 40%, 2 of 5 pts Instructor-created question

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Homework: Chapter 6 class assignment_9.30 Save Score: 0 of 1 pt 5 of 5 (2 complete) HW Score: 40%, 2 of 5 pts Instructor-created question Question Help Frances Manufacturing manufactures a product that it will sell for $200 per unit. The company is looking to project its operating income for its first two years of operations. Cost information for the single product is as follows: Direct materials per unit produced $40 Direct labor cost per unit produced $16 - Variable manufacturing overhead (MOH) per unit produced $8 Variable operating expenses per unit sold $4 Total fixed manufacturing (MOH) $286,000 Total fixed operating expenses $81,000 During its first year of operations, the company plans to manufacture 22,000 units and anticipates selling 15,000 of those units. During the second year of its operations, the company plans to manufacture 22,000 units and anticipates selling 27,000 units. It will have units in beginning inventory for the second year, from its first year of operations) What is operating income for year 1 using a variable costing income statement? O A $1,613,000 OB. $3,000,000 C. $1,704,000 D1,980,000

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