Answer:
A) $171,000 favorable
Explanation:
Static Budget variance is calculated by simply taking difference of budgeted values and actual values.
<u> </u>
<u>Static budget Variance report of Lincoln Corporation</u>
Budgeted Actual Variance Status
Units sold 39,000 48,000 9000 Favorable
Revenue (@$19) $741,000 $912,000 $171,000 Favorable
Variable costs $152,000 $167,000 $15,000 Unfavorable
Fixed costs $50,000 $41,000 $9,000 Favorable
<u> </u>
As Sales is increased by 9000 units and $171,000, the increase in sale is a favourable varince. So, correct option is A) $171,000 favorable.