Aquamarine Company Has the Following Information for the Month of May

Multiple Choice

Aquamarine Company has the following information for the month of May of the current year: $\begin{array}{lr}\text { Selling price } & \$ 220 \text { per unit } \\\text { Variable production costs } & \$ 90 \text { per unit produced } \\\text { Variable selling and admin. expenses } & \$ 25 \text { per unit sold } \\\text { Fixed production costs } & \$ 620,000 \\\text { Fixed selling and admin. expenses } & \$ 350,000 \\\text { Units produced } & 12,000 \text { units } \\\text { Units sold } & 11,500 \text { units }\end{array}$
There were no beginning inventories.
Compute Aquamarine's operating income for the month of May using the variable-costing method.

A) $480,000
B) $237,500
C) $387,500
D) $220,000