Managerial Accounting

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Brandy Toys: Variable Costing Method & Operating Income


Brandy Toys had the following information for the year just ended:

Manufacturing costs incurred:
Variable \$525,000
Fixed \$372,000
Nonmanufacturing costs incurred:
Variable \$144,800
Fixed \$77,400
  • Sales were 24,000 units at \$50 each.
  • Expected and actual production was 30,000 units.
  • There were no beginning inventories.

What is the operating income using variable-costing approach?

Enter your response as a whole number with no dollar signs or commas. For instance, enter 340700 instead of $340,700.75.