Question

Janos Corporation, which has only one product, has provided the following data concerning its most recent month of operations Selling price Units in beginning inventory Units produced Units sold Units in ending inventory 300 2,000 2,200 100 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense $ $ 29 $ 30 4 9 Fixed costs Fixed manufacturing overhead Fixed selling and administrative expense $34,000 $39,600 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month What is the net operating income for the month under variable costing? Multiple Choice $8,800 $12,200 $1,700 $24,800

Answer 1

Sales		244200	=2200*111
Variable expenses:
Variable cost of goods sold	138600		=2200*(29+30+4)
Variable selling and administrative expenses	19800		=2200*9
Total Variable expenses		158400
Contribution margin		85800
Fixed expenses:
Fixed manufacturing overhead	34000
Fixed selling and administrative expenses	39600
Total Fixed expenses		73600
Net operating income		12200
Option 2 $12,200 is correct