In September, Larson Inc

question 62

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 amount of operating income in the flexible budget (FB) for September, to the nearest dollar, was:

• A) $40,000.
• B) $48,000.
• C) $56,000.
• D) $70,000.
• E) $78,000.

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Definitions:

Biological Determinism

The belief that human behavior and characteristics are solely determined by genetic makeup and biological factors.

Asexual

An orientation characterized by a lack of sexual attraction towards others, where individuals may still form romantic, emotional connections.

Romantic

Pertaining to a style or movement in the arts that emphasizes emotion, imagination, and individualism above classical order and symmetry.

Sexual Attraction

The feelings of desire or interest towards others based on their sexual characteristics, which can be influenced by various biological, psychological, and social factors.