What is the net operating income for the month under variable costing?

A) $8,700
B) $5,700
C) $14,400
D) $(12,000)

Net Operating Income

The income generated from normal business operations after deducting operating expenses such as wages and cost of goods sold, excluding income from investments and other non-operational sources.

Variable Costing

An accounting method that only considers variable costs (costs that change with production levels) in product costing and decision-making.