[The Following Information Applies to the Questions Displayed Below

[The following information applies to the questions displayed below.]
Baskin Promotions,Inc.sells T-shirts decorated for a variety of concert performers.The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:
Cost of goods sold and variable operating expenses vary directly with sales,and the income tax rate is 30% at all levels of operating income.
If the concert season is slow due to poor weather,Baskin estimates that sales could fall to as low as 60,000 T-shirts.
-Assume Baskin actually achieves the 60,000 unit sales level,and that net income actually earned at this level was $70,000.A performance report would indicate that net income was:

A) $2,660 over budget.
B) $43,120 under budget.
C) $90,000 under budget.
D) At the budgeted level.

Correct Answer:

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