Question

Luanna Inc. 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		2,080																1,860
Revenues	$	156,000			$	2,080	U			A								B
Variable costs		C															$	81,840
Fixed costs	$	22,300
Operating income	$	46,850								D							$	41,000

The amount C, to nearest dollar, is:

Multiple Choice

• $86,850.

• $109,150.

• $69,150.

• $133,700.

• Impossible to determine without further information.

Answer 1

Answer is $86,850

Actual Results:

Operating Income = Revenues - Variable Costs - Fixed Costs
$46,850 = $156,000 - Variable Costs - $22,300
Variable Costs = $86,850

So, the amount C is $86,850