Item$16$

$1$

points

Time Remaining $1$ hour $55$ minutes $12$ seconds$01$:$55$:$12$

eBookItem $16$

Time Remaining $1$ hour $55$ minutes $12$ seconds$01$:$55$:$12$

Indiana Corporation produces a single product that it sells for $$9$ per unit. During the first year of operations, $100,000$ units were produced, and $90,000$ units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:

Fixed Costs Variable Costs

Raw materials $--$ $$1\mathrm{.}75$ per unit produced

Direct labour $--1\mathrm{.}25$ per unit produced

Factory overhead $$100,0000\mathrm{.}50$ per unit produced

Selling and administrative $70,0000\mathrm{.}60$ per unit sold

What was Indiana Corporation's operating income for the year using variable costing?

Multiple Choice

$$181,000$

$$271,000$

$$281,000$

$$371,000$