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2 points In response to poor sales, the sales manager of TJG Ltd has changed the pricing strategy to try and improve revenues and profits.

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2 points In response to poor sales, the sales manager of TJG Ltd has changed the pricing strategy to try and improve revenues and profits. As a result, the operating statement at the end of the period shows the following: Sales price variance: 13,000 Adverse Sales volume variance: 14,000 Favourable Sales quantity variance: 5,000 Favourable Which of the explanations below fits these variances? O Costs will have decreased given volumes have reduced. O Customers chose a less profitable mix than the budget anticipated. A price reduction may have driven an overall increase in contribution. O Prices have increased as the price variance is adverse. Previous

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