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1. Is it possible for the following two situations to occur at the same time?:

a) The sales mix variance is UNFAVORABLE

b) On a combined average basis, the actual contribution margin per unit EXCEEDS the static budget contribution margin per unit

2. If the static budget variance is unfavorable and the flexible budget variance is unfavorable, can we draw a conclusion about the sales volume variance?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M948300

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