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Osawa, Inc. planned and actually manufactured 200,000 units of its single product in its first year of operations. Variable manufacturing costs were $30 per unit of product. Planned and actual fixed manufacturing costs were $600,000, and selling and administrative costs totaled $400,000. Osawa sold 120,000 units of product at a selling price of $40 per unit. Osawa's operating income for the year using variable costing is
A. $200,000 B. $800,000 C. $440,000 D. $600,000
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