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What is the net income using variable costing

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Reference no: EM132949369

Canarie Manufacturing produces snow shovels. The selling price per snow shovel is $28.00. There is no beginning inventory. Costs involved in production are:

Direct Material $5.00
Direct Labor 4.00
Variable manufacturing overhead 3.00
total variable manufacturing costs per unit $12.00
Fixed manufacturing overhead per year $245,180

In addition, the company has fixed selling and administrative costs of $144,800 per year. During the year, Canarie produces 53,300 snow shovels and sells 48,010 snow shovels.

Problem 1: What is the net income using variable costing?

Reference no: EM132949369

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