Answer: $40000 unfavorable
Step-by-step explanation:
The sales volume variance for operating Income will be calculated as:
= Actual Unit Sold - Budgeted Unit Sales) × Standard Contribution Per Unit
= (72000 - 77000) × ($12 - $4)
= (72000 - 77000) × $8
= -5000 × $8
= $40000 Unfavourable