Profit for the year under variable costing, Accounting Basics

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Profit for the year under variable costing

Problem:

Pteri Manufacturing makes a single product - the Pteri. Information for 2005 appears below:

Required:

Question: What is the profit for the year under variable costing?

A. $190,000

B. $275,000

C. $185,000

D. $125,000

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics: Profit for the year under variable costing

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Accounting Basics: Profit for the year under variable costing

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