Ingerson 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)$12,000
B)$8,000
C)$(27,600)
D)$4,000

Question

Ingerson 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)$12,000 
B)$8,000 
C)$(27,600) 
D)$4,000

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 $4,000.

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