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Company ABC produces and sells two products X and Y. Product X is sold for $40 per unit and has a standard contribution of $12

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Company ABC produces and sells two products X and Y. Product X is sold for $40 per unit and has a standard contribution of $12 per unit, which is 30% of the selling price. Product Y is a new product, selling price is $70 per unit and achieves a standard contribution of just $7 per unit, which is 10% of the selling price. Budgeted sales are: 5,000 units of Xand 3,000 units of Y. Suddenly there was a cancellation of an advertising campaign for Product Y. It has meant that sales for the product will be below budget. Also Company has introduced some price discounts in an attempt to obtain sales for the product. Sales of X were in line with the budget. Which one of the following sales variances, would you expect to show a favorable variance for the period? Sales mix variance Sales volume variance Sales price variance Sales quantity variance

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