Tim's Tools,a Manufacturer of Cordless Drills,began Operations This Year

Multiple Choice

Tim's Tools,a manufacturer of cordless drills,began operations this year.During this year,the company produced 20,000 units and sold 18,000 units.At year-end,the company reported the following income statement using absorption costing: Production costs per unit total $14,which consists of $12.90 in variable production costs and $1.10 in fixed production costs (based on the 20,000 units produced) .60% of total selling and administrative expenses are variable.Compute net income under variable costing.

A) $307,800
B) $198,000
C) $195,800
D) $288,000
E) $220,000