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Khanam Corporation, which has only one product, has provided thefollowing data concerning its most recent month of operations: Sellingprice $177 Units in beginninginventory 0 Units produced 9,400

Khanam Corporation, which has only one product, has provided thefollowing data concerning its most recent month of operations:

Sellingprice $177
Units in beginninginventory 0
Units produced 9,400
Units sold 9,500
Units in endinginventory 1,400
Variable costs perunit:  
Directmaterials $40
Directlabor $57
Variablemanufacturing overhead $21
Variableselling and administrative $31
Fixed costs:  
Fixedmanufacturing overhead $75,200
Fixedselling and administrative $167,500

The company produces the same number of units every month,although the sales in units vary from month to month. The company'svariable costs per unit and total fixed costs have been constantfrom month to month.

What is the net operating income for the month under variablecosting?

$22,500

$23,300

$5,200

$35,100

Aug 16 2021 View more View Less

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