Indiana Corporation produces a single product that sells fr $9 per unit. During the first year of operations, 100,000 units were produced, and 90,000 units were sold. Manufacturing costs and selling & administrative expenses for the year were as follows:
- Fixed costs Variable costs
- $1.75 per unit produced Raw Materials
- $1.25 per unit produced Direct Labor
- $100,000 $0.50 per unit produced Factory Overhead
- $70,000 $0.60 per unit sold Selling & Administrative
What was Indiana Corporation's net operating income for the year using variable costing?