Information from Favorio, Inc's first year of operations is available below: Sales in units 6,500 Production in units 8,000 Manufacturing costs: Direct labor $3.50 per unit Direct material $5.00 per unit Variable overhead $2.00 per unit Fixed overhead $100,000 SG&A costs: Variable Cost $5.00 per unit Fixed cost $80,000 Sales price per unit $105 If Favorio, Inc had used variable costing, what amount of income before income taxes would it have reported?   calculate.

Answer rating: 100% (QA)

To calculate the income before income taxes using variable costing we need to consider the variable ... View the full answer