Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; ﬁxed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and ﬁxed selling and administrative costs, $220,000.The company sells its units for $45 each.Additional data follow: There were no variances. The income (loss) under variable costing is:
A)$(7,500).
B)$9,000.
C)$15,000.
D)$18,000.
E)None of the answers is correct.

Question

Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; ﬁxed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and ﬁxed selling and administrative costs, $220,000.The company sells its units for $45 each.Additional data follow:  There were no variances. The income (loss) under variable costing is:
A)$(7,500). 
B)$9,000. 
C)$15,000. 
D)$18,000. 
E)None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; ﬁxed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and ﬁxed selling and administrative costs, $220,000.The company sells its units for $45 each.Additional data follow:  There were no variances. The income (loss) under variable costing is:
A)$(7,500). 
B)$9,000. 
C)$15,000. 
D)$18,000. 
E)None of the answers is correct.

Favaz Began Business at the Start of This Year and Had