The net operating income for the year under super-variable costing is:
A)$1,321,000
B)$1,225,000
C)$1,395,000
D)$1,340,000

Question

Quizplus · Accepted Answer

Super-variable costing is a method of costing that treats all manufacturing costs as variable costs. This means that the net operating income for the year under super-variable costing is equal to the sales revenue minus the variable costs. In this case, the sales revenue is $2,545,000 and the variable costs are $1,224,000. Therefore, the net operating income for the year under super-variable costing is $2,545,000 - $1,224,000 = $1,321,000.

The Net Operating Income for the Year Under Super-Variable Costing