Iancu Corporation,which has only one product,has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing?
A)$27,300
B)$16,200
C)($7,200)
D)$11,100

Question

Iancu Corporation,which has only one product,has provided the following data concerning its most recent month of operations:  What is the net operating income for the month under variable costing?
A)$27,300 
B)$16,200 
C)($7,200) 
D)$11,100

Quizplus · Accepted Answer

Net operating income under variable costing can be calculated as follows:

Sales revenue - Variable expenses - Fixed expenses

= ($73,000) - ($40,500) - ($16,300)

= $16,200

Therefore, the net operating income for the month under variable costing is $16,200.

Option A and D are incorrect as they do not match the calculated net operating income. Option C is incorrect as it shows a negative net operating income which is not possible.

Iancu Corporation,which Has Only One Product,has Provided the Following Data