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In September, Larson Inc. sold 39,000 units of its only product for $234,000 and incurred a total cost of $221,000, of which $25,000 is fixed
In September, Larson Inc. sold 39,000 units of its only product for $234,000 and incurred a total cost of $221,000, of which $25,000 is 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, $7,800U; total flexible-budget variance, $63,100U; and, sales volume variance, in terms of contribution margin, $26,700U. | ||||||||||
The sales volume variance, in terms of operating income, is: | ||||||||||
A) $36,700 unfavorable | ||||||||||
B) $21,700 unfavorable | ||||||||||
C) $31,700 unfavorable | ||||||||||
D) $26,700 unfavorable | ||||||||||
E) $16,700 unfavorable |
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