Question:
Barnes Corporation expected to sell 150,000 games during the month of November. The following budgeted data are based on that level of sales:
|
Revenue (150,000 games)
|
$2,400,000
|
|
Variable expenses
|
1,425,000
|
|
Fixed manufacturing overhead expenses
|
250,000
|
|
Fixed selling & administrative expenses
|
500,000
|
|
Net operating income
|
225,000
|
Barnes" actual sales during November were 180,000 games. What should the actual net operating income during November have been?
A) $450,000
B) $270,000
C) $420,000
D) $510,000