Coroid Corporation used the following data to evaluate their current operating system. The company sells items for $11 each and had used a budgeted selling price of $12 per unit.

Actual Budgeted

Units sold 280,000 units 275,000 units

Variable costs $900,000 $885,000

Fixed costs $ 55,000 $ 52,000

What is the static-budget variance of operating income?

$238,000 unfavorable

$238,000 favorable

$235,000 favorable

$235,000 unfavorable