Mead Corporation has prepared a fixed budget based on 6,000 units. Their budgeted per unit selling price is $100, variable costs are $75 per unit, and fixed costs are $20,000. If actual sales activity was 5,000 units with revenue of $550,000, what is the sales variance shown on a fixed budget performance report?

multiple choice

• $50,000 Unfavorable

• $50,000

• $50,000 Favorable