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Managerial Accounting

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Aspen Partners: Solve for Variable OI When Given Absorption OI

MGRACT-4IAGY1

Aspen Partners prepared the following absorption costing income statement for the latest year:

Absorption-costing Income Statement
Sales (8,000 units) \$160,000
Cost of goods sold \$108,000
Gross margin \$52,000
Selling and admin expenses \$18,000
Operating income \$34,000
  • Variable manufacturing costs were \$11.00 per unit.
  • Variable selling and administrative costs were \$1.50 per unit.
  • Actual fixed costs were equal to budgeted fixed costs.
  • Production during the period was 8,750 units.

What was variable costing operating income?

Respond as a whole number without a dollar sign or commas. For instance, enter 3400 instead of \$3,400.