Lilypad Hot Tubs,Inc Calculate the Operating Income for August Using Variable Costing

question 78

Multiple Choice

Lilypad Hot Tubs,Inc.reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 640,000 \\\hline \text { Variable Costs } & 210,000 \\\hline \text { Fixed Costs } & 73,000 \\\hline\end{array}$$ Calculate the operating income for August using variable costing.

• A)$430,000
• B)$567,000
• C)$357,000
• D)$640,000

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Definitions:

Pectoralis Major

A large chest muscle that plays a key role in moving the shoulder joint.

Latissimus Dorsi

A large, flat muscle on the back that helps in movement of the shoulder and arm, including extension and rotation.

Teres Major

An upper limb muscle that helps rotate and draw the arm towards the body.

Coracobrachialis

A muscle in the shoulder that assists in flexing and adducting the arm.