Luanna Incorporated manufactures game consoles. Some of the company's data was misplaced. Use the following information to replace the lost data.

	Actual Results	Flexible Budget Variance	Flexible Budget	Sales Volume Variance	Master Budget
Units	1,960				1,800
Revenues	$ 135,240	$ 1,960 U	A		B
Variable costs	C				$ 68,400
Fixed costs	$ 21,700
Operating income	$ 46,250		D		$ 35,000

The amount D is:

Multiple Choice

• $40,120.

• $61,820.

• $95,120.

• $113,540.

• Impossible to determine without further information.