Loring Company has incurred the following operating costs for the month: Variable costs per unit: Direct materials ..... Direct labor ......... Variable overhead Variable selling ...... Fixed costs per month: $5.00 $3.00 $2.00 $1.00 Fixed overhead $4,000 Fixed selling & administrative $3,600 Fixed overhead is applied (assigned) to each unit of product based on the budgeted production of 2,000 units. During the month, 2,000 units were produced. Loring started the month with 300 units in beginning inventory. A total of 2,100 units were sold during the month at a price of $20. What is operating income that needs to be reported under variable costing? $13.400 $11,300 $9,200 $12,400 If the variable cost ratio goes down, which of the following is TRUE? The contribution margin will increase and the break-even point will decrease. The contribution margin will decrease and the break-even point will increase. Both the contribution margin and the break-even point will increase. Both the contribution margin and the break-even point will decrease