SailFind,Inc What Is the Operating Income Using Variable Costing If 550

question 5

Multiple Choice

SailFind,Inc.has collected the following data.(There are no beginning inventories.) $$\begin{array} { | l | r | } \hline \text { Units produced } & { 580 \text { units } } \\\hline \text { Sales price } & \$ 130 \text { per unit } \\\hline \text { Direct materials } & \$ 19 \text { per unit } \\\hline \text { Direct labor } & \$ 15 \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 5 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 15,200 \text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 6 \text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 16,400 \text { per year } \\\hline\end{array}$$ What is the operating income using variable costing if 550 units are sold?

• A) $15,150
• B) $46,750
• C) $55,100
• D) $6,850

---

Definitions:

Federal Minimum Wage

The lowest legal hourly pay for many workers in the United States, set by federal law.

Labor Market

Refers to the economic space where workers offer their services and employers seek to hire labor, characterized by the negotiation of wages, hours, and working conditions.

Unemployment

A measure of the number of people who are actively looking for work but are not currently employed.

Firms Lay Off

The process by which companies reduce their workforce in response to business conditions, such as decreased demand or economic downturns.