Consider the information below:
Sales (7,000 units) $700,000
Total direct labor and direct materials $400,000
Total factory overhead (60% fixed) $200,000
Total marketing and administrative expenses (20% variable) $140,000
Units of product manufactured 10,000
Beginning Inventory, finished goods (units) none
Ending Inventory, finished goods (units) 3,000
Work-in-process inventories none
What is firm's operating income under (actual) variable costing?
• $140,000
$104,000
$80,000
$192,000