MAFurther variance analysis F2

AD Ltd manufactures and sells a single product, E, and uses a standard absorption costing system. Standard cost and selling price details for product E are as follows. $ per unit Variable cost 8 Fixed cost 2 10 Standard profit 5 Standard selling price 15 The sales volume variance reported for last period was $9,000 adverse. AD Ltd is considering using standard marginal costing as the basis for variance reporting in future. What would be the correct sales volume variance to be shown in a marginal costing operating statement for last period? A $6,428 (A) B $6,428 (F) C $12,600 (F) D $12,600 (A) The answer by BPP is following. But it is pity I didnt understand this question and its answer. Specially this part of the answer Sales volume variance in terms of contribution = $9,000(A)/$5× $7 = $12,600 (A) The sales volume variance in a marginal costing system is valued at standard contribution per unit, rather than standard profit per unit. Contribution per unit of E = $15 ? $8 = $7 Sales volume variance in terms of contribution = $9,000(A)/$5× $7 = $12,600 (A)