Eastwood Company has the following information for 2011: There were no beginning inventories.
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What is the net income for Eastwood using the variable costing method?

Question

Eastwood Company has the following information for 2011:  There were no beginning inventories.
-
What is the net income for Eastwood using the variable costing method?

Quizplus · Accepted Answer

Variable costing method considers only variable costs in determining net income. In this case, the variable costs are $788,000. The net income is calculated as sales revenue minus variable costs, which is $1,200,000 - $788,000 = $412,000.

Eastwood Company Has the Following Information for 2011: There