Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations:   Selling price$111   Units in beginning inventory 0Units produced 7,500Units sold 7,200Units in ending inventory 300   Variable costs per unit:  Direct materials$24Direct labor$34Variable manufacturing overhead$1Variable selling and administrative expense$5Fixed costs:  Fixed manufacturing overhead$217,500Fixed selling and administrative expense$115,200What is the net operating income for the month under variable costing?

A. $5,700
B. $14,400
C. $(12,000)
D. $8,700


Answer: A

Business

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