The following data pertain to last year”s operations at Tredder Corporation, a company that produces a single product:
|
Units in beginning inventory |
0 |
|
Units produced |
20,000 |
|
Units sold |
19,000 |
|
Selling Price per unit |
$100.00 |
|
Variable costs per unit: |
|
|
Direct materials |
$12.00 |
|
Direct labor |
$25.00 |
|
Variable manufacturing overhead |
$3.00 |
|
Variable selling and administrative |
$2.00 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$500,000 |
|
Fixed selling and administrative |
$600,000 |
What was the variable costing net operating income last year?
A) $12,000
B) $57,000
C) $2,000
D) $27,000