Question:
Johnston Company manufactures a single product. The company has supplied the following data:
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Selling price
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$30
|
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Variable costs per unit:
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|
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Production
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$10
|
|
Selling and administrative
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$4
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|
Fixed costs:
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|
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Production
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$15,000
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|
Selling and administrative
|
$10,000
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Last year there was no beginning inventory. During the year, 20,000 units were produced and 17,000 units were sold.
The company"s net operating income last year under variable costing would be:
A) $110,000
B) $149,000
C) $161,000
D) $170,000