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Question - Ilford Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $ 97
Units in beginning inventory 0
Units produced 7200
units sold 6900
units in ending inventory 300
Variable costs per unit:
Direct materials $ 27
Direct labor $ 35
Variable manufacturing overhead $ 2
Variable selling and administrative $4
Fixed costs:
Fixed manufacturing overhead $ 136,800
Fixed selling and administrative $ 62,100
What is the net operating income for the month under variable costing?
$1,200
$5,700
$6,900
$(18,000)
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