During Its First Year of Operations, Carlos Manufacturing Corporation Incurred

Multiple Choice

During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its only product: The company also incurred the following costs in selling 7,500 units of product during its first year: Assume that direct labor is a variable cost. If Carlos' absorption costing net operating income for this first year is $118,125, what would its variable costing net operating income be for this first year?

A) $86,000
B) $90,000
C) $104,125
D) $146,250