You are given the following Static budget and Actual results for ABC Incs most recent fiscal year:

Static Budget (Based on 10,000 units)			Actual Results (Based on 12,000 units sold)
Sales	$ 100,000		Sales	$ 114,000
Less Variable Costs	-$ 60,000		Less Variable Costs	-$ 81,600
Contribution Margin	$ 40,000		Contribution Margin	$ 32,400
Less Fixed Costs	-$ 20,000		Less Fixed Costs	-$ 20,000
Operating Income	$ 20,000		Operating Income	$ 12,400

Based on the above which of the following statements is correct:

Select one:

a. The static budget variance is $7,600 favourable, the sales volume variance is $8,000 unfavourable and the flexible budget variance is $15,600 favourable.

b. The static budget variance is $7,600 favourable, the Sales volume variance is $8,000 unfavourable and the flexible budget variance is $15,600 favourable.

c. The static budget variance is $7,600 unfavourable, the sales volume variance is $8,000 unfavourable and the flexible budget variance is $15,600 favourable.

d. The static budget variance is $7,600 unfavourable, the sales volume variance is $8,000 favourable and the flexible budget variance is $15,600 unfavourable.