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Question(s) / Instruction(s):

Western Outfitters Mountain Sports projected 2008 sales of 75,000 units at a unit sale price of $12. Actual 2008 sales were 72,000 units at $14 per unit. Actual variable costs, budgeted at $4 per unit, totaled $4.75 per unit. Budgeted fixed costs totaled $375,000 while actual fixed costs amounted to $400,000. What is the flexible budget variance for variable expenses? 

A             $12,000 favorable

B             $54,000 unfavorable

C             $54,000 favorable

D             $25,000 favorable

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