A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.

		Basic		Deluxe
Sales (units)		8,600		2,300
Sales price per unit	$	8,600	$	12,600
Variable costs per unit	$	6,700	$	9,300

Actual sales were 7,300 basic models and 3,100 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.

What is the sales activity variance for the basic model?

$16,340,000.

$1,520,000.

$2,470,000.

$13,870,000.