Favini Company, 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)$11,800
B)$3,700
C)$8,100
D)$(23,600)

Question

Favini Company, 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)$11,800 
B)$3,700 
C)$8,100 
D)$(23,600)

Quizplus · Accepted Answer

Under variable costing, net operating income is calculated by subtracting variable costs and fixed costs from sales revenue. The correct answer is $3,700.

Favini Company, Which Has Only One Product, Has Provided the Following