If Variable Selling and Administrative Expenses Totaled $124,000 for the Year

Multiple Choice

If variable selling and administrative expenses totaled $124,000 for the year (80,000 units at $1.55 each) and the planned variable selling and administrative expenses totaled $136,500 (78,000 units at $1.75 each) , the effect of the quantity factor on the change in variable selling and administrative expenses is:

A) $3,000 increase
B) $3,500 decrease
C) $3,000 decrease
D) $3,500 increase