During May, Philly Company had actual sales of $174,000 compared to budgeted sales of $190,000. Actual cost of goods sold was $105,000, compared to a budget of $125,500. Actual monthly operating expenses, budgeted at $28,000, totaled $25,000. Interest revenue of $2,500 was earned during May but had not been included in the budget. The performance report for May would show a net income variance of:

Question 2 options:

$10,000 Favourable

No answer is the correct

$4,000 Unfavourable

$8,000 Unfavourable