Answer:
Results are belolw.
Explanation:
First, we need to calculate the total unitary variable cost:
Unitary variable cost= 0.2 + 0.3= $0.5
Income statement:
Sales= 8,000*0.8= 6,400
Total variable cost= (8,000*0.5)= (4,000)
Contribution margin= 2,400
Fixed factory overhead= (1,200)
Fixed Selling and Administrative= (320)
Net operating income= 880
Operating income is the actual income earned by the business from its regular business operations. It is determined from preparing the income statement at the end of the financial year.
The operating income through variable costing is $880.
The variable cost operating income is prepared by deducting all the variable costs from sales and from the contribution margin entire fixed costs are deducted to determine the net operating income.
The variable cost operating income statement is attached in the image below.
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