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Please explain exactly how you got the answer 10. During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000

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10. During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product: Direct materials. $7 per unit Direct labor...... $3 per unit Variable manufacturing overhead. $18 per unit Fixed manufacturing overhead... $450,000 in total The company also incurred the following costs in selling 7,500 units of product during its first year: Variable selling and administrative. $2 per unit Fixed selling and administrative.. $60,000 in total Assume that direct labor is a variable cost. If Carlos' absorption costing net operating income for this first year is $108,125, what would its variable costing net operating income be for this first year? A) $110,000 B) $100,000 C) $80,000 D) $90,000

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