Company IR currently uses variable costing in presenting its
income statement. In March 2020, the company produced 50,000 units
and sold 45,000 units. The company sells its products at $100 per
unit. The following are the costs incurred during March: • Direct
materials - $30 per unit • Direct labor - $20 per unit •
Manufacturing overhead - $20 per unit (30% is fixed cost) • Total
period cost - $20,000 (30% is fixed cost)
Assuming there were no ending inventories in February 2020, what
would be the net operating income of Company IR? $1,300,000
$1,330,000 $1,800,000 $1,830,000