What will be reported as operating income


Question: Novak sells its product for $78 per unit. During 2025, it produced 121100 units and sold 106100 units. Costs per unit are: direct materials $24, direct labor $9, variable overhead $4, and variable operating expenses $2. Fixed costs are $968800 manufacturing overhead, and $75000 operating expenses. Assuming no variances were reported, no beginning inventory exists, and the company uses absorption costing, what will be reported as operating income? O $2713600. O $3108000. O $2925800. O $3214100.

 

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Accounting Basics: What will be reported as operating income
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