Provelpsi Pty Ltd sells it goods at a 100% mark-up. A review of the variance report reveals the following:

A favourable variance in Sales revenue of 10%

An unfavourable variance in Cost of sales of 5%

Which of the following statements is correct?

Group of answer choices:

The actual mark-up % was more than forecast and management will be disappointed with the cost of sales variance.

None of these statements are correct.

The actual mark-up % was more than forecast and management will be pleased with the cost of sales variance.

The actual mark-up % was less than forecast and management will be disappointed with the cost of sales variance.

The actual mark-up % was less than forecast and management will be pleased with the cost of sales variance.