Last Year,fixed Manufacturing Overhead Costs Were $30,000,variable Production Costs Were

Multiple Choice

Last year,fixed manufacturing overhead costs were $30,000,variable production costs were $48,000,fixed selling and administration costs were $20,000,and variable selling administrative expenses were $9,600.There was no beginning inventory.During the year,3,000 units were produced and 2,400 units were sold at a price of $40 per unit.Under variable costing,what would be the operating income (loss) ?

A) $6,000.
B) $4,000.
C) ($2,000) .
D) ($4,400) .Op.income = 2,400 * $40 - 38,400 - 9,600 - 30,000 - 20,000 = ($2,000)