The exhibit below reflects a summary of performance for a single item of a retail store's inventory for the month ended April 30: (CIA adapted)  

 

	Actual Results				Flexible Budget Variances				Flexible Budget				Static (Master) Budget
Sales (units)		12,000				—				12,000				13,000
Revenue (sales)	$	218,000			$	22,000	U		$	240,000			$	270,000
Variable costs		126,000				9,000	U			117,000				130,000
Contribution margin	$	92,000			$	31,000	U		$	123,000			$	140,000
Fixed costs		78,000				—				78,000				77,000
Operating Income	$	14,000			$	31,000	U		$	45,000			$	63,000

 

The sales volume variance is:

$30,000 favorable.

$30,000 unfavorable.

$9,000 favorable.

$22,000 unfavorable