A manufacturing company that produces a single 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) $15,200
B) $(6,600)
C) $10,200
D) $5,000

Question

A manufacturing company that produces a single 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) $15,200 
B) $(6,600) 
C) $10,200 
D) $5,000

Quizplus · Accepted Answer

Net operating income under variable costing can be calculated as follows:
Sales - Variable expenses - Fixed expenses = Net operating income
$67,200 - ($36,000 + $6,000) - $15,000 = $10,200. Therefore, the net operating income for the month under variable costing is $10,200.

A Manufacturing Company That Produces a Single Product Has Provided