VARIANCE

A company sells two products X and Y. Product X sells for $30 oer unit and achieves a standard contribution of $12 per unit which is 40% of selling price. Product Y a new product sells for $80 per unit and achieve a standard contribution of just $10 per unit which is 12.5% of selling price. Budgeted sales are 5000unit of X and 3000 units of Y. However the sudden cancellation of an advertising campaign for product Y has meant that sales for the product will be well below budget and there has been price discounting in an attempt to obtain sales for product. Sales of X were in line with the budget. Which of the following sales variance would you expect to show a favourable variance for the period? A. Sales mix variance B. Sales price variance C. Sales quantity variance D. Sales volume variance The answer is A why A?