Fairwell manufactures a single product. Farewell operates a standard marginal costing system. Revenue, cost, and production data are as follows: Standard selling price per unit is $22 per unit. The standard variable production cost is $9 per unit. Budgeted annual production is 360,000 units Budgeted non-production costs of $1,152,000 per year are all fixed. The following data relate to last month: Budget Actual Units Units Production 30,000 33,000 Sales 32,000 34,000 Last month the budgeted profit was $200,000 and actual total sales revenue was $731,000. REQUIRED a) Calculate the sales price and sales volume contribution variances for last month showing clearly whether each variance is favorable or adverse. (6 Marks) b) Explain how the two variances are favorable or adverse. (3 Marks) c) Calculate the BUDGETED profit for last month assuming that the company was using absorption costing.