Hi-Hi Corporation manufactures a computer monitor. Shown below is HI-HI's cost structure:
Variable cost per monitor: $75.20
Total fixed cost for the year: $1,512,000
Manufacturing cost: $75.20
Selling and administrative: $14.60
Total fixed cost for the year: $456,000
In its first year of operations, Hi-Hi produced 100,000 monitors but only sold 95,000. Hi-Hi's contribution margin in this first year was $3,100,000.
Under variable costing, what is Hi-Hi's net operating income for its first year?
Group of answer choices:
2,066,000
1,132,000
1,261,000
3,230,900