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Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,000 units.

Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations:

2018 2019 Units sold 6,500 9,000

Units produced 8,000 8,000

Costs: Variable factory overhead per unit $ 0.20 $ 0.20

Fixed factory overhead $ 1,200 $ 1,200

Variable marketing per unit $ 0.30 $ 0.30

Fixed Selling and Administrative $ 320 $ 320

Variable costing operating income for 2018 is calculated to be:

Multiple Choice

a. $1,030.

b. $430.

c. $149.

d. $655.

e. $1,180.

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