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Tokless Inc. planned and manufactured 400,000 units of its single product in 2019, its first year of operations. Variable manufacturing costs were $50 per unit of production. Planned and fixed manufacturing costs were $800,000. Marketing and administrative costs (all fixed) were $600,000 in 2019. Tokless Inc. sold 195,000 units of product in 2019 at $65 per unit. Problem 1: Full costing operating income for 2019 is calculated to be:
Multiple Choice Option 1: $1,525,000. Option 2: $1,935,000. Option 3: $1,850,000. Option 4: $2,750,000. Option 5: $2,260,000.
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