The current annual budget for Armstrong Ltd. indicates total revenue of $8,000,000. The total variable costs are $1,600,000 and fixed costs are $5,600,000. Calculate the net income if total revenue for the year falls below the budget by $1,000,000.
A) $400,000
B) $0
C) ($200,000) Loss
D) ($220,000) Loss
E) ($800,000) Loss

Question

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The Answer of The current annual budget for Armstrong Ltd. indicates total revenue of $8,000,000. The total variable costs are $1,600,000 and fixed costs are $5,600,000. Calculate the net income if total revenue for the year falls below the budget by $1,000,000.
A) $400,000
B) $0
C) ($200,000) Loss
D) ($220,000) Loss
E) ($800,000) Loss

The Current Annual Budget for Armstrong Ltd