Eliason Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$72 |
|
Units in beginning inventory |
0 |
|
Units produced |
7,300 |
|
Units sold |
7,200 |
|
Units in ending inventory . |
100 |
|
Variable costs per unit: |
|
|
Direct materials |
$12 |
|
Direct labor |
$24 |
|
Variable manufacturing overhead |
$3 |
|
Variable selling and administrative |
$8 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$138,700 |
|
Fixed selling and administrative |
$36,000 |
What is the net operating income for the month under variable costing?
A) $7,200
B) $1,900
C) $5,300
D) $1,400