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

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