Franz Began Business at the Start of This Year and Had

Multiple Choice

Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. There were no variances. Planned and actual production was 10,000 units. Sales were 8,500 units. The net income (loss) under variable costing is:

A) $(7,500) .
B) $9,000.
C) $15,000.
D) $18,000.
E) $26,000.