For the first week of July, Londons Inn budgeted for 700 room nights at an average room rate of $95. Actual room nights for the week totaled 900 with an average room rate of $85.

The price-volume variance for the week was: a. $2,000 favorable. b. $1,000 favorable. c. $2,000 unfavorable. d. $1,000 unfavorable.