barrett, inc. reports the following information for the year ended december 31: beginning finished goods inventory 70 units units produced 450 units units sold 520 units sales price $ 150 per unit direct materials $ 25 per unit direct labor $ 10 per unit variable manufacturing overhead $ 15 per unit fixed manufacturing overhead $ 15 comma 600 per year variable selling and administrative costs $ 6 per unit fixed selling and administrative costs $ 13 comma 000 per year the beginning finished goods inventory costs were $ 3 comma 600 under absorption costing and $ 3 comma 500 under variable costing. what is the operating income using variable costing

Operating Income 20,600

Explanation:

First Step will be to calculate the contribution of the begining inventory and the contribution of the untis produced in this period:

BEGINNING INVENTORY

70 units at $150 = $10,500

cost of BI                 $3,600

Contribution Begining Inventory         $6,900

get the production of this year contribution

Sales Units              150

Direct Materials 25

Direct Labour     10

Variable MO       15

Variable S&A       6

Total Variable           56

Contribution            94

Unit produced 450

Contribution Produced units 42300

Second, the operating income:

     Contribution Begining Inventory         $6,900

     + Contribution Produced units             42,300

                                    Total contribution = 49,200

 Fixed Cost

fixed MO 15,600

fixed S&A 13,000

                                       Total Fixed Cost    28,600

                                     Operating Income 20,600

answer; limited pay life;

answer(c) factors of production;