Purpbunni
Answered

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Answer: $40000 unfavorable

Explanation:

The sales volume variance for operating Income will be calculated as:

= Actual Unit Sold - Budgeted Unit Sales) × Standard Contribution Per Unit

= (72000 - 77000) × ($12 - $4)

= (72000 - 77000) × $8

= -5000 × $8

= $40000 Unfavourable

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