Paula Corporation reports the following for this month: The beginning inventory is 30 units. It produces...

Transcribed Image Text:

Paula Corporation reports the following for this month: The beginning inventory is 30 units. It produces 140 units during this month. And 150 units are sold at $3,000 each. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 200 units, the same every month. Variable costs: manufacturing cost per unit = $100; the operating cost per unit = $20 - Total Fixed costs: budgeted manufacturing costs = $7,000; operating costs = $36,000 How much is the operating income if the company uses variable costing? $397,200 $419,000 $393,000 $380,900 $389,000 Paula Corporation reports the following for this month: The beginning inventory is 30 units. It produces 140 units during this month. And 150 units are sold at $3,000 each. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 200 units, the same every month. Variable costs: manufacturing cost per unit = $100; the operating cost per unit = $20 - Total Fixed costs: budgeted manufacturing costs = $7,000; operating costs = $36,000 How much is the operating income if the company uses variable costing? $397,200 $419,000 $393,000 $380,900 $389,000