Music Incorporated planned and manufactured 259,500 units of its single product in 2022, its first year of operations. Variable manufacturing costs were $49 per unit of production. Planned and actual fixed manufacturing costs were $619,000. Marketing and administrative costs (all fixed) were $309,500 in 2022. Music Incorporated sold 209,500 units of product in 2022 at $79 per unit.   Variable costing operating income for 2022 is calculated to be

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Chapter21: Variable Costing For Management analysis
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Music Incorporated planned and manufactured 259,500 units of its single product in 2022, its first year of operations. Variable manufacturing costs were $49 per unit of production. Planned and actual fixed manufacturing costs were $619,000. Marketing and administrative costs (all fixed) were $309,500 in 2022. Music Incorporated sold 209,500 units of product in 2022 at $79 per unit.

 

Variable costing operating income for 2022 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)

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