Static Budget:

Sales volume: 1,300 units: Price $72 per unit

Variable costs : $32 per unit: Fixed costs: $37,900 per month

Operating Income: $14,100

Actual Results:

Sales volume : 980 units: Price $74 per unit

Variable costs: $35 per unit: Fixed costs: $34,300

Operating Income: $3,920

Calculate the flexible budget variance for Sales Revenue.

a. $2,620 U

b .$2,620 F

c. $1,960 U

d. ***$1,960

How do you get this answer? (D)