In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 were 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, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U.

The total number of budgeted units reflected in the master budget for September, to the nearest whole number, was:
A) 36,000 units.
B) 40,000 units.
C) 45,000 units.
D) 48,000 units.
E) 50,000 units.

Question

In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 were 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, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U.

The total number of budgeted units reflected in the master budget for September, to the nearest whole number, was:

The total number of budgeted units reflected in the master budget for September, to the nearest whole number, was: 
A) 36,000 units.
B) 40,000 units.
C) 45,000 units.
D) 48,000 units.
E) 50,000 units.

Quizplus · Accepted Answer

The Answer of In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 were 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, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U.

The total number of budgeted units reflected in the master budget for September, to the nearest whole number, was: 
A) 36,000 units.
B) 40,000 units.
C) 45,000 units.
D) 48,000 units.
E) 50,000 units.