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Duo, Inc., carries two products and has the following year-end income statement (000s omitted): Units Sales $ Variable costs Fixed Costs Total Costs Operating income

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Duo, Inc., carries two products and has the following year-end income statement (000s omitted): Units Sales $ Variable costs Fixed Costs Total Costs Operating income Product AR-10 Budget Actual 2,700 3,800 $16,200 $10,260 2,970 3,800 1,800 1,900 $ 4,770 $ 5,700 $11,430 $ 4,560 Product ZR-7 Budget Actual 7,400 6,900 $14,800 $14,490 7,400 7,250 2,400 2,400 $ 9,800 $ 9,650 $ 5,000 $ 4,840 The net effect of AR-10's sales volume variance on profit is: Multiple Choice $5,390 favorable Multiple Choice $5,390 favorable. O $3,070 favorable $3,980 favorable. $4,350 favorable $2,700 favorable

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