Kilihea Corporation Produces a Single Product

Multiple Choice

Kilihea Corporation produces a single product. The company's absorption costing income statement for July follows: The company's variable production costs are $20 per unit and its fixed manufacturing overhead totals $80,000 per month.
-Net operating income under the variable costing method for July would be:

A) $53,000
B) $49,800
C) $61,000
D) $57,000