"What is the net operating income (loss) for the month under variable costing?" Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:elling price $ 108
Units in beginning inventory 0
Units produced 8,900
Units sold 8,500
Units in ending inventory 400
Variable costs per unit:
Direct materials $ 17
Direct labor $ 59
Variable manufacturing overhead $ 5
Variable selling and administrative expense $ 9
Fixed costs:
Fixed manufacturing overhead $ 133,500
Fixed selling and administrative expense $ 8,700
What is the net operating income (loss) for the month under variable costing?

Net operating income = $10,800

Explanation:

                    Farris Corporation

Income statement (Variable costing method)

For the year ended, December 31, 20XX

Sales ($108 × 8,500 units)                =                                             $918,000

Less: Variable expenses

Direct materials ($17 × 8,500 units) =                                      $144,500

Direct labor ($59 × 8,500 units) =                                            $501,500

Variable manufacturing overhead ($5 × 8,500 units) =          $ 42,500

Variable selling & administrative expense ($9×8,500 units)= $76,500

Total variable expense                                                            =       $765,000

Contribution Margin                                                                         $153,000

Less: Fixed expenses        

Fixed manufacturing overhead                   $ 133,500

Fixed selling and administrative expense $     8,700                                    

Total fixed expenses                                                                         $142,200

Net operating Income (loss)                                                             $10,800

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the answer is d

explanation: