1. Indiana Corporation produces a single product that it sellsfor $9 per unit. D

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1. Indiana Corporation produces a single product that it sellsfor $9 per unit. During the first year of operations 100000 unitswere produced and 90000 units were sold. Manufacturing costs andselling and administrative expenses for the year were asfollows:Fixed Costs Variable CostsRaw materials $1.75 per unit producedDirect labor $1.25 per unit producedFactory overhead $100000 $0.50 per unit producedSelling and administrative $70000 $0.60 per unitsoldWhat was Indiana Corporations net operating income for the yearusing variable costingA)271000 B)281000 C)181000 d)371000

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