Fahey Company Manufactures a Single Product That It Sells For $\$ 25$

question 102

Multiple Choice

Fahey Company manufactures a single product that it sells for $\$ 25$ per unit. The company has the following cost structure:
$\begin{array}{|l|r|}\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 9 \\\hline \text { Selling and administrative } & \$ 3 \\\hline \text { Fixed costs in total } & \\\hline \text { Manufacturing } & \$ 72,000 \\\hline \text { Selling and administrative } & \$ 54,000 \\\hline\end{array}$
There were no units in beginning inventory. During the year, 18,000 units were produced and 15,000 units were sold.
-What was the company's operating income for the year under variable costing?

• A) $57,000.
• B) $60,000.
• C) $69,000.
• D) $81,000.

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