If Variable Cost of Goods Sold Totaled $90,000 for the Year

Multiple Choice

If variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,400 (16,000 units at $5.40 each) , the effect of the unit cost factor on the change in variable cost of goods sold is:

A) $6,400 decrease
B) $6,400 increase
C) $7,200 increase
D) $7,200 decrease