[The following information applies to the questions displayed below.] Scavenger Company, a manufacturer of recycling bins, began operations on January 1 of the current year. During this time, the company produced 60,000 units and sold 55,000 units at a sales price of $15 per unit. Cost information for this year is shown in the following table:Production costs   Direct materials$2.50per unitDirect labor$3.00per unitVariable overhead$0.75per unitFixed overhead$240,000in totalNon-production costs   Variable selling and administrative$10,000in totalFixed selling and administrative$50,000in totalGiven the Scavenger Company data, what is net income using variable costing?

A. $150,000
B. $181,250
C. $201,250
D. $276,250
E. $177,600


Answer: B

Business

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