Company XYZ created a static budget with the following information based on sales of 10,000 units: Revenue; $50,000, COGS; $30,000, Operating Expenses, $15,000. There are no fixed costs. Actual profit for the period was $6,700 based on actual sales of 13,000 units. Based on a flexible budget, Company XYZ would have:

Select one:

a.a favorable net income variance of $200

b.cannot be calculated

c.a favorable net income variance of $250

d.an unfavorable net income variance of $300