Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Khan Corporation used the following data to evaluate their current operating system. The company sells items for $20 each and used a budgeted selling price of $20 per unit.

-What is the static-budget variance of operating income?

A) $190,000 unfavorable
B) $60,000 unfavorable
C) $60,000 favorable
D) $165,000 favorable