The static budget, at the beginning of the month, for Steak Frites Company follows

Static budget:
Sales volume: 1,100 units; Sales price: $70.00 per unit
Variable costs: $33.00 per unit; Fixed costs: $39,800 per month
Operating income: $900

Actual results, at the end of the month, follows:
Actual results:
Sales volume: 995 units; Sales price: $74.00 per unit
Variable costs: $35.00 per unit; Fixed costs: $35,000 per month
Operating income: $3,805
Calculate the sales volume variance for revenue.
A) $4,800 U
B) $7,350 U
C) $3,885 U
D) $3,980 F

B .B)
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget
Units 995 0 995 105 U $1,100
Sales Revenue* $73,630 $3,980 F $69,650 $7,350 U $77,000
Variable Costs** 34,825 1,990 U 32,835 $3,465 F 36,300
Contribution Margin $38,805 $1,990 F $36,815 $3,885 U $40,700
Fixed Costs 35,000 4,800 F 39,800 $0 39,800
Operating Income/(Loss) $3,805 $6,790 F $(2,985 ) $3,885 U $900

* Sales price per unit x Units
** Variable cost per unit x Units