A company's master budget for October is to manufacture and sell 30,500 units, for a total sales revenue of $280,000, total variable costs of $173,250, and total fixed costs of $25,000. The company actually manufactured and sold 32,500 units, and generated $50,000 of operating income in October.

The total flexible-budget (FB) variance for operating income in October, to the nearest dollar, was:

• $7,000 unfavorable.
• $17,999 unfavorable.
• $38,750 unfavorable.
• $25,000 unfavorable.
• $5,001 unfavorable.