[The following information applies to the questions displayed below.] Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year 25,000unitsUnits sold this year 15,000unitsDirect materials$9per unitDirect labor$11per unitVariable overhead$3per unitFixed overhead$137,500in totalGiven Advanced Company's data, and the knowledge that the product is sold for $50 per unit and operating expenses are $200,000, compute the net income under variable costing.
A. $55,000
B. $67,500
C. $205,000
D. $122,500
E. $80,500
Answer: B
Business
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