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Almond Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $90,000 + $20 * X,

Almond Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $90,000 + $20 * X, where X represents the expected number of units of its only product to be manufactured and sold. The budgeted average selling price per unit was $40 for budgeted sales volume 6,000 units. Reported actual results for February were as follows:

Sales

6,200 units

Sales revenue

$ 260,000

Less variable costs

($ 125,000)

Contribution margin

$ 135,000

Less fixed costs

($ 98,000)

Operating Income

$ 37,000

What was the total static budget variance for February?

A. $6,000 Unfavourable

B. $6,500 Unfavourable

C. $7,000 Favourable

D. $7,500 Favourable

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