Below is a Multiple Choice problem. Please show your work. Thank you.

Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $10; fixed manufacturing costs, $56,000; variable selling and administrative costs per unit, $1; and fixed selling and administrative costs, $224,000. The company sells its units for $47 each. Additional data follow:

Planned production in units	10,000
Actual production in units	10,000
Number of units sold	8,000

There were no variances. The income (loss) under variable costing is:

Multiple Choice

• $16,200.

• $(7,000).

• $8,000.

• None of the answers is correct.

  Incorrect

• $19,200.