Racine Filter Corporation used the following data to evaluate their current operating system. The company sells items for $14.50 each and had used a budgeted selling price of $15 per unit.

Actual Budgeted

Units sold 206,000 units 200,000 units

Variable costs $965,000 $950,000

Fixed costs $ 53,000 $ 50,000

What is the static-budget variance of operating income?

	a.	$28,000 favorable
	b.	$26,000 favorable
	c.	$31,000 unfavorable
	d.	$28,000 unfavorable