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Nickolls Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 30,000 units and sold 27,000 units. The company's only product is sold for $230 per unit.
The net operating income for the year under super-variable costing is:
$78,000 $594,000 $351,000 $405,000
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