Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.
The net operating income for the year under super-variable costing is:
A) $1,400,000
B) $1,110,000
C) $1,005,000
D) $580,000

Question

Leheny Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.
The net operating income for the year under super-variable costing is:
A) $1,400,000 
B) $1,110,000 
C) $1,005,000 
D) $580,000

Quizplus · Accepted Answer

Super-variable costing income statement:
 11eacbfc_c889_2742_8ffe_3594c10b6757_TB7552_00

Leheny Corporation Manufactures and Sells One Product