A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price = $112
Unit in beginning inventory = 0
Units produced = 5500
Units sold =5300
Units in ending inventory = 200
Variable costs per unit:
Direct materials = $33;
Direct labor = $37;
VMOH = $5
Variable selling and administrative = $6
Fixed costs:
FMOH = $71500; Fixed selling and administrative = $79500
What is the net operating income for the month under variable costing?
Answer is $15900
show the process!