In September, Larson Inc

question 92

Multiple Choice

In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000, of which $25,000 was fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U.

The actual amount of operating income earned in September, to the nearest dollar, was:

• A) $15,000.
• B) $40,000.
• C) $63,000.
• D) $78,000.
• E) $105,000.

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Definitions:

Inner Hair Cells

Cells located in the cochlea of the inner ear that convert sound vibrations into electrical signals sent to the brain.

Tonotopic Map

An arrangement in the auditory system where different frequencies of sound are systematically mapped to specific locations.

Cochlea

A spiral-shaped cavity of the inner ear, essential for converting sound into nerve impulses.

Primary Auditory Cortex

The region of the brain that is directly responsible for the processing of auditory information.