Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed:

\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 260,000 & \$ 360,000 & \$ 620,000 \\\text { Variable Costs } & 156.000 & 180,000 & 336,000\\\text { Contribution Margin } & \$ 104,000 & \$ 180,000 & \$ 284,000 \\\text { Fixed costs } & 130,000 & 108,000 & 238,000\\\text { Operating Income (Loss) }&\$(26,000)&\$72,000&\$46,000\\\text { Selling Price per unit }&\$130.00&\$60.00\end{array}

\text { The following actual operating results were reported after the year was over: }

\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 202,500 & \$ 467,500 & \$ 670,000 \\\text { Variable Costs } & 117.000 & 212,500 & 329,500\\\text { Contribution Margin } & \$ 85,500 & \$ 255,000 & \$ 340,500 \\\text { Fixed costs } & 140,000 & 108,000 & 248,000\\\text { Operating Income (Loss) } & \$(54,500) & \$ 147,000 & \$ 92,500\\\text { Units Sold } & 1,500 & 8,500\end{array}

The sales quantity variance for Product X is:
A) $4,000 favorable.
B) $25,000 favorable.
C) $26,000 favorable.
D) $45,000 favorable.
E) $52,000 unfavorable.

Erwin Co Provided the Following Information for a Selected Production Factor

Multiple Choice

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