The Current Annual Budget for Armstrong Ltd

Multiple Choice

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