A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under absorption costing?

A) $11,900
B) $(20,200)
C) $14,600
D) $2,700

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest, providing a measure of profitability from its core business activities.

Variable Costing

An accounting method in which variable production costs are included in product costs, while fixed overhead costs are treated as period expenses.