The Vargas Company Had the Following Expectations for the Year

Multiple Choice

The Vargas Company had the following expectations for the year:
$\begin{array}{ll}\text {Budgeted results for the year were: }\\\text {Total market for the product}&175,000 \mathrm{units}\\\text { Vargas' budgeted sales } & \$ 1,763,125 \\\text { Variable costs per unit } & \$ 18.75 \\\text { Selling price per unit } & \$ 32.50\\\text { Actual results for the year were: }\\\text { Total market for the product}&166,250 \mathrm{units}\\\text { Vargas's actual sales}&56,525\mathrm{units}\\ \text { Total Variable costs}&\$1,073,975\\\text { Total sales}&\$1,752,275\end{array}$

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Is the industry volume variance favorable or unfavorable?

A) Unfavorable.
B) Favorable.