Western Outfitters projected sales of 79,000 units for the year at a unit sales price of $12

00. Actual sales for the year were 73,000 units at $14.00 per unit. Variable costs were budgeted at $4.00 per unit, and the actual variable cost was $5.00 per unit. Budgeted fixed costs totaled $375,000 while actual fixed costs amounted to $415,000. What is the flexible budget variance for operating income?
A) $209,000 unfavorable
B) $33,000 favorable
C) $33,000 unfavorable
D) $73,000 favorable

B .B)
Actual Results Flexible Budget Variance Flexible Budget
Units 73,000 0 73,000
Sales Revenue $1,022,000 $146,000 F $876,000
Variable Costs 365,000 73,000 U 292,000
Contribution Margin $657,000 $73,000 F $584,000
Fixed Costs 415,000 40,000 U 375,000
Operating Income/(loss) $242,000 $33,000 F $209,000