Indiana Corporation produces a single product that it sells for $9 per unit.During the first year of operations,100,000 units were produced and 90,000 units were sold.Manufacturing costs and selling and administrative expenses for the year were as follows: What was Indiana Corporation's net operating income for the year using variable costing?
A)$181,000
B)$271,000
C)$281,000
D)$371,000

Question

Indiana Corporation produces a single product that it sells for $9 per unit.During the first year of operations,100,000 units were produced and 90,000 units were sold.Manufacturing costs and selling and administrative expenses for the year were as follows:  What was Indiana Corporation's net operating income for the year using variable costing?
A)$181,000 
B)$271,000 
C)$281,000 
D)$371,000

Quizplus · Accepted Answer

Unit product cost = $1.75 + $1.25 + $0.50 = $3.50
 11eaaee8_672d_29ba_933a_19b6651df861_TB5186_00

Indiana Corporation Produces a Single Product That It Sells for $9