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The Vargas Company Had the Following Expectations for the Year

question 33

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The Vargas Company had the following expectations for the year:
Budgeted results for the year were: Total market for the product175,000units Vargas’ budgeted sales $1,763,125 Variable costs per unit $18.75 Selling price per unit $32.50 Actual results for the year were:  Total market for the product166,250units Vargas’s actual sales56,525units Total Variable costs$1,073,975 Total sales$1,752,275\begin{array}{ll}\text {Budgeted results for the year were: }\\\text {Total market for the product}&175,000 \mathrm{units}\\\text { Vargas' budgeted sales } & \$ 1,763,125 \\\text { Variable costs per unit } & \$ 18.75 \\\text { Selling price per unit } & \$ 32.50\\\text { Actual results for the year were: }\\\text { Total market for the product}&166,250 \mathrm{units}\\\text { Vargas's actual sales}&56,525\mathrm{units}\\ \text { Total Variable costs}&\$1,073,975\\\text { Total sales}&\$1,752,275\end{array}

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Is the industry volume variance favorable or unfavorable?

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