Jarvinen Company, which has only one product, has provided the following data concerning its most recent month of operations: The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
-What is the net operating income for the month under variable costing?
A)$11,600
B)$2,900
C)$8,700
D)$0

Question

Jarvinen Company, which has only one product, has provided the following data concerning its most recent month of operations: The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
-What is the net operating income for the month under variable costing?
A)$11,600 
B)$2,900 
C)$8,700 
D)$0

Quizplus · Accepted Answer

Under variable costing, net operating income is calculated by subtracting variable costs from sales and then subtracting fixed costs. The correct answer is $2,900, which reflects this calculation.

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