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Hernando finds that he has spent more on groceries than budgeted in Year 1. He discovers that both the quantity he consumed and prices were

Hernando finds that he has spent more on groceries than budgeted in Year 1. He discovers that both the quantity he consumed and prices were greater than expected. In his budget for Year 2, Hernando should

budget for the increased quantity of food.

budget for the increased food prices.

budget for both the increased quantity and prices.

assume this variance was a fluke and ignore it.

use the Year 1 budget figure and see what happens.

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