What is the amount of the income from operations that would be reported on the variable costing income statement?
A) $18,900
B) $18,200
C) $18,000
D) $21,000

Question

Quizplus · Accepted Answer

Income from operations under variable costing can be calculated as: Total Sales - Total Variable Costs - Total Variable Selling and Administrative Expenses. 
On calculating the given data, we get: 
Total Sales = $55,000 
Total Variable Costs = $20,000 
Total Variable Selling and Administrative Expenses = $16,800 
Therefore, Income from operations = $55,000 - $20,000 - $16,800 = $18,200. 
Thus, the correct option is B.

What Is the Amount of the Income from Operations That