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White Company manufactures a single product and has the following cost structure:
Variable costs per unit:Direct materials $ 3.50Direct labor $ 4.75Variable manufacturing overhead $ 1.25Variable selling and administrative expense $ 3.00Fixed costs per month:Fixed manufacturing overhead $ 107,500Fixed selling and administrative expense $ 64,500
The company produces 21,500 units each month. Assume beginning inventories are zero, 21,500 units are produced, and 20,200 units are sold in a month. If the unit selling price is $25, what is the net operating income under variable costing for the month? (Round your intermediate calculations to 2 decimal places.)$60,600$100,650$80,500$87,000
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