“Elbrege Company manufactures a single product. Assume the following data for 19×4: Fixed costs in total: Selling and Administrative $50,000 Production $75,000 Variable costs per unit: Selling and Administrative $4 Production $7 There were no units in inventory on January 1. During the year 25,000 units were produced and 20,000 units were sold. Page 24 Version 1 86. Assume that the selling price Elbrege Company’s product is $30 per unit. The company’s net income for 19×4 under variable costing would be: a. $255,000 b. $270,000 c. $200,000 d. $280,000”,”1The company’s net income for 19×4 under variable costing:Sales (20000 x 30) $600,000 Less Variable Costs: Manufacturing (20000 x 7) 140,000 Selling (20000 x 4) 80,000 220,000Contribution Margin 380,000 Less Fixed Costs: Manufacturing 75,000 Selling 50,000 125,000Net Income $255

“Elbrege Company manufactures a single product. Assume the following data for 19×4: Fixed costs in total: Selling and Administrative $50,000 Production $75,000 Variable costs per unit: Selling and Administrative $4 Production $7 There were no units in inventory on January 1. During the year 25,000 units were produced and 20,000 units were sold. Page 24 Version 1 86. Assume that the selling price Elbrege Company’s product is $30 per unit. The company’s net income for 19×4 under variable costing would be: a. $255,000 b. $270,000 c. $200,000 d. $280,000”,”1The company’s net income for 19×4 under variable costing:Sales (20000 x 30) $600,000 Less Variable Costs: Manufacturing (20000 x 7) 140,000 Selling (20000 x 4) 80,000 220,000Contribution Margin 380,000 Less Fixed Costs: Manufacturing 75,000 Selling 50,000 125,000Net Income $255

000″