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Question - Kassia Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
Selling price per unit $100
Variable costs per unit:
Manufacturing:
Direct materials $9
Direct labor $20
Variable manufacturing overhead $11
Variable selling and administrative expense $10
Fixed costs per year:
Fixed manufacturing overhead $45,000
Selling and administrative expense $68,500
Production 5,000 units
Sales 4,500 units
Required - What is net operating income under variable costing in the first year?
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