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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 was 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.
Find the amount of operating income in the flexible budget (FB) for September?
a. 56,000
b. 40,000
c. 48,000
d. 70,000
e. 78,000
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