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

question 105

Multiple Choice

Indiana Hot Tubs,Inc.reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 650,000 \\\hline \text { Variable Costs } & 270,000 \\\hline \text { Fixed Costs } & 73,000 \\\hline\end{array}$$ Calculate the operating income for August using variable costing.

• A)$380,000
• B)$577,000
• C)$307,000
• D)$650,000

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Definitions:

Anterior Side

The front or forward-facing side of the body or an anatomical structure, opposite of the posterior.

Scapula

A triangular-shaped bone that makes up part of the shoulder blade, serving as an anchor for several muscles.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone; known commonly as the collarbone.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow, connecting with several muscles and joints.