Question: The following data pertain to last year’s operations at Tredder Corporation, a company that produces a single product:
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Units in beginning inventory................................
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0
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Units produced......................................................
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20,000
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Units sold.................................................
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19,000
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Selling price per unit.............................................
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$100.00
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Variable costs per unit:
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Direct materials..................................................
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$12.00
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Direct labor.........................................................
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$25.00
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Variable manufacturing overhead...................
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$3.00
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Variable selling and administrative..................
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$2.00
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Fixed costs per year.
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Fixed manufacturing overhead.........................
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$500,000
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Fixed selling and administrative.......................
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$600,000
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What was the variable costing net operating income last year?