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

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Accounting

ABC Corporation produces a single product that it sells for $9 per unit. During the first year of operations, 100,000 units were produced and 80,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:

Fixed Costs Variable Costs
Raw materials -- $1.75 per unit produced
Direct labour -- 1.25 per unit produced
Factory overhead $100,000 0.50 per unit produced
Selling and administrative 70,000 0.60 per unit sold

What was ABC Corporation's operating income for the year using variable costing?

a.

$181,000.

b.

$222,000.

c.

$372,000.

d.

$271,000.

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