Indiana Corporation produces a single product that it sells for $9 per unit. During the first year of operations, 100,000 units were produced, and 90,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:
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Fixed Costs
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Variable Costs
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Raw materials
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$1.75 per unit produced
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Direct labor
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$1.25 per unit produced
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Factory overhead
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$100,000
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$0.50 per unit produced
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Selling and administrative
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$70,000
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$0.60 per unit
sold
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What was Indiana Corporation's net operating income for the year using variable costing?