What the income or loss under variable costing is

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Favaz began business at the start of this year and had the following costs:

variable manufacturing cost per unit, $10;

fixed manufacturing costs, $56,000;

variable selling and administrative costs per unit, $1; and

fixed selling and administrative costs, $224,000.

The company sells its units for $47 each. Additional data follow:

Planned production in units10,000

Actual production in units10,000

Number of units sold8,000

There were no variances.

Problem 1: The income (loss) under variable costing is:

Multiple Choice

Option 1: $(7,000).
Option 2: $8,000.
Option 3: $16,200.
Option 4: $19,200.
Option 5: None of the answers is correct.

Reference no: EM132792376

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