Gomez Company Has No Beginning and Ending Inventories,and Reports the Following

question 81

Multiple Choice

Gomez Company has no beginning and ending inventories,and reports the following data about its only product:
$\begin{array}{ll}\text { Direct materials used } & \$ 470,000 \\\text { Direct labor } & \$ 180,000 \\\text { Fixed indirect manufacturing } & \$ 130,000 \\\text { Fixed selling and administrative } & \$ 150,000\\\text { Variable indirect manufacturing } & \$ 120,000 \\\text { Variable selling and administrative } & \$ 60,000 \\\text { Selling price(per unit) } & \$ 100\end{array}$
$\begin{array} { l } \text {Units produced and sold }&30,000 \\\end{array}$

Gomez Company uses the contribution approach to prepare the income statement.What is the operating income?

• A) $1,890,000
• B) $2,100,000
• C) $2,190,000
• D) $2,250,000

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