The Leonid Company master budget, which was based on planned activity of 42,000 units, resulted in a profit of $140,000. The company's flexible budget, which was based on actual activity of 40,000 units, resulted in a profit of $136,000. Actual profits, which resulted from the actual activity of 40,000 units, were $139,000. What was the company's sales activity (or sales volume) variance?

Multiple Choice

• $1,000 unfavorable

• $4,000 unfavorable

• None of these.

• $4,000 favorable

• $3,000 favorable