Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price$90 Units in beginning inventory 0Units produced 3,400Units sold 3,000Units in ending inventory 400 Variable costs per unit: Direct materials$21Direct labor$38Variable manufacturing overhead$6Variable selling and administrative expense$4Fixed costs: Fixed manufacturing overhead$54,400Fixed selling and administrative expense$3,000 What is the net operating income for the month under variable costing?
A. $5,600
B. $6,400
C. $12,000
D. $(20,400)
Answer: A
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