A Company's Master Budget for October Is to Manufacture and Sell

Multiple Choice

A company's master budget for October is to manufacture and sell 30,000 units for a total of $270,000 with total variable costs of $180,000 and total fixed costs of $24,000.The company actually manufactured and sold 32,000 units and generated $45,000 of operating income in October.The flexible-budget operating income in October is:

A) $27,000.
B) $70,400.
C) $72,000.
D) $83,520.
E) $86,400.