The information below is for Casey Corporation.
Product sales: 1,000 units at $10 each
Variable manufacturing costs: $5.50 per unit
Fixed manufacturing overhead: $1,200
Variable selling and administrative costs: $.50 per unit sold
Fixed selling and administrative costs: $1,000
No beginning inventory
Units produced: 1,200
Casey's operating income under variable (direct) costing is
A. $700
B. $2,300
C. $1,800
D. $600