Tokless Inc. planned and manufactured 400,000 units of its single product in 2019, its first year of operations. Variable manufacturing costs were $50 per unit of production. Planned and fixed manufacturing costs were $800,000. Marketing and administrative costs (all fixed) were $600,000 in 2019. Tokless Inc. sold 195,000 units of product in 2019 at $65 per unit.

Full costing operating income for 2019 is calculated to be:

Multiple Choice

• $2,260,000.

• $2,750,000.

• $1,850,000.

• $1,935,000.

• $1,525,000.