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:

Low-Density Lipoprotein

Often referred to as 'bad' cholesterol, it transports cholesterol particles throughout the body which can build up in the arteries leading to heart disease.

Aorta

The main trunk of the arterial system of the body.

Left Ventricle

The chamber of the heart that pumps oxygenated blood to the aorta and throughout the body.

Heart Failure

A chronic condition where the heart is unable to pump sufficiently to maintain blood flow to meet the body's needs.