BCA Corp. had an inventory at the beginning of the period consisting of 1,000 radios with a total value of $40,000. During the period, BCA produced an additional 40,000 radios. The direct cost of direct materials, direct labor, and variable overhead was $1.28 million. The fixed overhead was $750,000. During the period, BCA sold 37,000 radios for a total of $2,479,000. What is BCAs operating income if the variable cost method is used to assign costs to products?

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To calculate BCA Corps operating income using the variable cost method we need to account for the co... View the full answer