Alvin Inc. planned and actually manufactured 200,000 units of its single product in 2008, its first year of operations. Variable manufacturing costs were $30 per unit of product. Planned and actual fixed manufacturing costs were $600,000, and marketing and administrative costs totaled $400,000 in 2004. Alvin sold 120,000 units of product in 2008 at a selling price of $40 per unit. What is Alvin's 2008 operating income using variable costing? a. $800,000 b. $600,000 c. $440,000 d. $200,000
Alvin Inc. planned and actually manufactured 200,000 units of its single product in 2008, its first year of operations. Variable manufacturing costs were $30 per unit of product. Planned and actual fixed manufacturing costs were $600,000, and marketing and administrative costs totaled $400,000 in 2004. Alvin sold 120,000 units of product in 2008 at a selling price of $40 per unit. What is Alvin's 2008 operating income using variable costing? a. $800,000 b. $600,000 c. $440,000 d. $200,000
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Operating income using variable costing solution general accounting question
Transcribed Image Text:Alvin Inc. planned and actually manufactured 200,000 units of its
single product in 2008, its first year of operations. Variable
manufacturing costs were $30 per unit of product. Planned and
actual fixed manufacturing costs were $600,000, and marketing
and administrative costs totaled $400,000 in 2004. Alvin sold
120,000 units of product in 2008 at a selling price of $40 per unit.
What is Alvin's 2008 operating income using variable costing?
a. $800,000
b. $600,000
c. $440,000
d. $200,000
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