[ihuomaotuh]

Thank you very much sir for your prompt response. I really appreciate your explanation, please i also cannot solve this, I have subtracted the favourable and added the adverse. I also did the reverse but can’t get the answer.

A company has recorded the following variances for a period:
Sales volume variance $10,000 adverse
Sales price variance $5,000 favourable
Total cost variance $12,000 adverse

Standard profit on actual sales for the period was $120,000.
What was the fixed budget profit for the period?

Thank you sir

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