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 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,$8,000U;total flexible-budget variance,$63,000U;and,sales volume variance,in terms of contribution margin,$27,000U.The actual amount of operating income earned in September was:

Question

Quizplus · Accepted Answer

The actual operating income is calculated as actual sales ($240,000) minus actual total costs ($225,000), resulting in $15,000.