July, Neptune Company Had Actual Sales of $144,000 Compared to Budgeted

Multiple Choice

July, Neptune Company had actual sales of $144,000 compared to budgeted sales of $156,000. Actual cost of goods sold was $108,000, compared to a budget of $109,200. Monthly operating expenses, budgeted at $22,400, totaled $20,000. Interest revenue of $2,000 was earned during July but had not been included in the budget. The performance report for July would show a net income variance of what amount?

A) $6,400
B) $10,400
C) $(6,400)
D) $(10,400)