April, Cherry Company Had Actual Sales of $180,000 Compared to Budgeted

Multiple Choice

April, Cherry Company had actual sales of $180,000 compared to budgeted sales of $195,000. Actual cost of goods sold was $135,000, compared to a budget of $136,500. Monthly operating expenses, budgeted at $28,000, totaled $25,000. Interest revenue of $2,500 was earned during April but had not been included in the budget. The performance report for April would show a net income variance of what amount?

A) $8,000
B) $13,000
C) $(8,000)
D) $(13,000)