Johnson Construction Materials Company Has a Sales Office Which Sells

Johnson Construction Materials Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. Below is the partially completed performance report. $$\begin{array}{l}\text { Revenue Center Performance Report }\\\begin{array} { | c | r | c | c | c | c | c | c | } \hline &{ \text { Actual } } & \text { Flexible Budget } & & \text { Flexible } & \text { Sales Volume } & & \text { Static } \\\hline \text { Product type: } & \text { Sales Revenue } & \text { Variance } & \text { U/F } & \text { Budget } & \text { Variance } & \text { U/F } & \text { Budget } \\\hline 40 \text { inch } & \$ 31,500 & & & \$ 30,000 & & & \$ 40,000 \\\hline 36 \text { inch long } & \$ 40,150 & & & \$ 42,000 & & & \$ 33,000 \\\hline 36 \text { inch short } & \$ 36,200 & & & \$ 33,000 & & & \$ 30,000 \\\hline 32 \text { inch } & \$ 19,000 & & & \$ 20,000 & & & \$ 28,000 \\\hline\end{array}\end{array}$$ The company uses management by exception to address flexible budget variances. On which variance would the company focus first?

A) 40 inch
B) 36 inch long
C) 36 inch short
D) 32 inch