DuringJuly, Johnson Company had actual sales of$150,000 compared to budgeted sales of$162,000. Actual cost of goods sold was$105,500, compared to a budget of$108,300. Monthly operatingexpenses, budgeted at$22,400, totaled$20,000. Interest revenue of$2,000 was earned during July but had not been included in the budget. If you ignoretax, which one of the following amounts is the net income variance on the performance report for July for JohnsonCompany?

A.

($4,800) Unfavourable.

B.

($6,800) Unfavourable.

C.

($9,600) Unfavourable.

D.

$19,200 Favourable.