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Indiana Corporation produces a single product that it sells for $9 per unit. During the...

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Accounting

Indiana Corporation produces a single product that it sells for $9 per unit. During the first year of operations, 101,000 units were produced and 80,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:
\table[[,Fixed Costs,Variable Costs],[Raw materials,,$1.00 per unit produced],[Direct labour,,$1.25 per unit produced],[Factory overhead,$90,000,$0.25 per unit produced],[Selling and administrative,$50,000,$1.00 per unit sold]]
What was Indiana Corporation's operating income for the year using variable costing?
a. $440,000
b. $300,000
c. $130,006
d. $415,500
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