Llywelyn,Inc.reports the following information for July: $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 960,000 \
\hline \text { Variable Costs } & 110,000 \
\hline \text { Operating Income } & 360,000 \
\hline
\end{array}$$ What is the total fixed cost using variable costing?
A)$850,000
B)$490,000
C)$250,000
D)$470,000

Question

Llywelyn,Inc.reports the following information for July: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 960,000 \
\hline \text { Variable Costs } & 110,000 \
\hline \text { Operating Income } & 360,000 \
\hline
\end{array}$$ What is the total fixed cost using variable costing?
A)$850,000
B)$490,000
C)$250,000
D)$470,000

Quizplus · Accepted Answer

The total fixed cost can be calculated by subtracting the variable costs and operating income from the sales revenue: $960,000 - $110,000 - $360,000 = $490,000.

Llywelyn,Inc What Is the Total Fixed Cost Using Variable Costing? A)$850,000

Llywelyn,Inc What Is the Total Fixed Cost Using Variable Costing?
A)$850,000