Dessa, Inc. reports the following information for the year ended December 31: ...
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Accounting
Dessa, Inc. reports the following information for the year ended December 31:
| Beginning Finished Goods Inventory | 50 | units | |
| Units produced | 450 | units | |
| Units sold | 500 | units | |
| Sales price | $140 | per unit | |
| Direct materials | $25 | per unit | |
| Direct labor | $10 | per unit | |
| Variable manufacturing overhead | $16 | per unit | |
| Fixed manufacturing overhead | $15,800 | per year | |
| Variable selling and administrative costs | $8 | per unit | |
| Fixed selling and administrative costs | $14,000 | per year |
The beginning Finished Goods Inventory costs were $3,300 under absorption costing and $2,550 under variable costing. What is the operating income using variable costing?
A.$3,700
B.$40,200
C.$40,500
D.$10,700
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