multiple choice (1)

A business operated at 100% of capacity during its first month, with the following results: $90,000 Sales (90 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $40,000 20,000 2,000 7,000 69,000 Operating expenses: Variable operating expenses Fixed operating expenses $ 8,000 1.000 9,000 The amount of operating income that would be reported on the variable costing income statement is a. $21,000 b. $18,900 c. $18,000 d. $18,200