In September, Larson Inc

question 85

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 were 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 total number of budgeted units reflected in the master budget for September, to the nearest whole number, was:

• A) 36,000 units.
• B) 40,000 units.
• C) 45,000 units.
• D) 48,000 units.
• E) 50,000 units.

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Definitions:

Equal Management

The equitable distribution of management responsibilities and decision-making powers among members of a group or organization.

Partnerships at Will

Business partnerships without a fixed duration, which can be dissolved at any time by any partner.

RUPA

The Revised Uniform Partnership Act, a legal guideline adopted by many states, governing the operation of partnerships and the relationships between partners.

Profit Sharing

A company policy where employees receive a portion of the company's profits in addition to their regular salary.