During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product: The company also incurred the following costs in selling 7,500 units of product during its first year: Assume that direct labor is a variable cost. If Carlos' absorption costing net operating income for this first year is $118,125, what would its variable costing net operating income be for this first year?
A)$86,000
B)$90,000
C)$104,125
D)$146,250

Question

During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product:  The company also incurred the following costs in selling 7,500 units of product during its first year:  Assume that direct labor is a variable cost. If Carlos' absorption costing net operating income for this first year is $118,125, what would its variable costing net operating income be for this first year?
A)$86,000 
B)$90,000 
C)$104,125 
D)$146,250

Quizplus · Accepted Answer

The Answer of During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product:  The company also incurred the following costs in selling 7,500 units of product during its first year:  Assume that direct labor is a variable cost. If Carlos' absorption costing net operating income for this first year is $118,125, what would its variable costing net operating income be for this first year?
A)$86,000 
B)$90,000 
C)$104,125 
D)$146,250

During Its First Year of Operations, Carlos Manufacturing Corporation Incurred