Indiana Corporation produces a single product that sells fr $9 per unit. During
ID: 2386011 • Letter: I
Question
Indiana Corporation produces a single product that sells fr $9 per unit. During the first year of operations, 100,000 units were produced, and 90,000 units were sold. Manufacturing costs and selling & administrative expenses for the year were as follows:Fixed costs Variable costs
$1.75 per unit produced Raw Materials
$1.25 per unit produced Direct Labor
$100,000 $0.50 per unit produced Factory Overhead
$70,000 $0.60 per unit sold Selling & Administrative
What was Indiana Corporation's net operating income for the year using variable costing?
A.$271,000
B.$181,000
C.$281,000
D$371,000
***PLEASE SHOW HOW to get the answer***
Explanation / Answer
Fixed costs Variable costs $1.75 per unit produced Raw Materials .$281,000 Indiana Corporation's net operating income