Wind Fall, a Manufacturer of Leaf Blowers, Began Operations This

Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blowers and sold 8,500. At year-end, the company reported the following income statement using absorption costing: Production costs per leaf blower total $20, which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced) . Fifteen percent of total selling and administrative expenses are variable. Compute net income under variable costing.

A) $146,500
B) $158,500
C) $237,500
D) $206,500
E) $246,500

Correct Answer:

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