Shipp, Inc

Shipp, Inc. budgets the following costs for a normal monthly volume of 500 units selling for $4,000 each. Manufacturing Nonmanufacturing
Variable $800,000 $1,000,000
Fixed 600,000 400,000
The income (loss) using variable costing when 500 units are produced and 400 units are sold is:

A) $840,000 loss
B) $160,000 income
C) $480,000 income
D) $720,000 loss