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Indiana Corporation produces a single product that it sells for $10 per unit. During the...

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Accounting

Indiana Corporation produces a single product that it sells for $10 per unit. During the first year of operations, 104,000 units were produced and 90,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:
Fixed Costs
Variable Costs
Raw materials
$1.50 per unit produced
Direct labour
$1.00 per unit produced
Factory overhead
$100,000
$0.75 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?
Question 16Answer
a.
$517,500
b.
$367,500
c.
$448,000
d.
$140,006

Answer & Explanation Solved by verified expert
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