Reference no: EM132930316

Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 14,500 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations:

                                                      2018              2019

Units sold                                      13,000            12,500

Units produced                               14,500           13,500

Costs: Variable factory overhead per unit $0.15         $0.15

Fixed factory overhead                    $2,900            $2,700

Variable marketing per unit                 $0.30               $0.30

Fixed Selling and Administrative           $320                $320

Problem 1: Full costing operating income for 2019 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)

Multiple Choice

Option 1: $1,780.

Option 2: $225.

Option 3: $2,150.

Option 4: $655.

Option 5: $1,555.