Lilypad Hot Tubs, Inc Calculate the Operating Income for August Using Variable Costing

Multiple Choice

Lilypad Hot Tubs, Inc. reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 640,000 \\\hline \text { Variable Costs } & 210,000 \\\hline \text { Fixed Costs } & 73,000 \\\hline\end{array}$$ Calculate the operating income for August using variable costing.

A) $430,000
B) $567,000
C) $357,000
D) $640,000