Wind Fall,a Manufacturer of Leaf Blowers,began Operations This Year

Multiple Choice

Wind Fall,a manufacturer of leaf blowers,began operations this year.During this year,the company produced 10,000 leaf blowers and sold 8,500.At year-end,the company reported the following income statement using absorption costing: Production costs per leaf blower total $20,which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced) .Fifteen percent of total selling and administrative expenses are variable.Compute net income under variable costing.

A) $146,500
B) $158,500
C) $237,500
D) $206,500
E) $246,500