Winston Co. had two products code named X and Y. The firm had the following budget for August:

Product XProduct YTotalSales$286,000$520,000$806,000Variable Costs189,800218,400408,200

Contribution Margin $96,200$301,600$397,800

Fixed costs50,000108,000158,000

Operating Income$46,200$193,600$239,800

Selling Price per unit$110.00$50.00

On September 1, the following actual operating results for August were reported:

Product XProduct YTotalSales$360,000$540,000$900,000Variable Costs195,000216,000411,000Contribution Margin$165,000$324,000$489,000Fixed costs50,000108,000158,000Operating Income$115,000$216,000$331,000Units Sold3,0009,000

Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.

The contribution margin sales volume variance for Product Y is:

Multiple Choice

• $30,600 favorable.
• $16,000 unfavorable.
• $40,600 unfavorable.
• $91,000 unfavorable.
• $20,500 favorable.