Erie Corporation manufactures a single product that it sells for $35 per unit. The company has the following cost structure: There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold.
The company's net operating income under variable costing would be:
A) $407,500
B) $421,250
C) $431,250
D) $417,500

Question

Erie Corporation manufactures a single product that it sells for $35 per unit. The company has the following cost structure:  There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold.
The company's net operating income under variable costing would be:
A) $407,500 
B) $421,250 
C) $431,250 
D) $417,500

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Erie Corporation Manufactures a Single Product That It Sells for $35