Calculation of budget variances XYZ Inc introduced a new reusable water bottle. At the launch it was expected that product will attract many customers and 2,600 units will be sold in the first month at an expected unit price of $9,50. The cost production was expected to stand at 16,000 in total. After a month of effort actual results start coming in and actual units sold were 2,750 at a price of $8,75 per unit. The actual production cost was 15,500. 1- Please identify three relevant variances and calculate them. 2- Please define the favorable vs unfavorable concept, when discussing these three relevant variances.