Use the Following Information to Answer the Following Questions

question 65

Multiple Choice

Use the following information to answer the following Questions
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow.


-The income (loss) under variable costing is:

• A) $(7,500).
• B) $9,000.
• C) $15,000.
• D) $18,000.
• E) None of the answers is correct.

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