Question 7(1 point)

Reference: 09-20

Alaska Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $100,000 + $40 * X, where X represents the expected number of units of its only product to be manufactured and sold. The budgeted average selling price per unit was $65 for budgeted sales volume 5,000 units. Reported actual results for February were as follows:

Sales5,400 unitsSales revenue$324,000Less variable costs194,400Contribution margin$129,600Less fixed expenses102,000Operating income$27,600

What was the sales volume variance for February?

Question 7 options:

A)

$26,000 F.

B)

$2,600 F.

C)

$7,400 U.

D)

$10,000 F.