Butteco Corporation has provided the following cost data for last year when 100,000 units were produced and sold:

Butteco Corporation has provided the following cost data for last year when 100,000 units were produced and sold:

All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense. There are no beginning or ending inventories. If the selling price is $10 per unit, the net operating income from producing and selling 110,000 units would be:



A. $450,000
B. $385,000
C. $405,000
D. $560,000




Answer: C


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