Dentofax,Inc Calculate the Operating Income for August Using Absorption Costing

Multiple Choice

Dentofax,Inc.reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 800,000 \\\hline \text { Variable Cost of Goods Sold } & 110,000 \\\hline \text { Fixed Cost of Goods Sold } & 65,000 \\\hline \text { Variable Selling and Administrative Costs } & 130,000 \\\hline \text { Fixed Selling and Administrative Costs } & 65,000 \\\hline\end{array}$$ Calculate the operating income for August using absorption costing.

A) $430,000
B) $240,000
C) $995,000
D) $370,000