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solution

Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed:
Budget Actual Unit sales Product X 23,600 50,000 Product Y 95,000 87,000 Unit contribution margin Product X $ 3.30 $ 2.60 Product Y $ 15.00 $ 12.00 Unit selling price Product X $ 12.00 $ 13.00 Product Y $ 50.00 $ 49.00 Industry volume was estimated to be 1,862,000 units at the time the budget was prepared. Actual industry volume for the period was 2,330,000 units. Jackson measures variances using contribution margin.
The total selling price variance of the period is:
Multiple Choice
$111,500 unfavorable.
$66,500 unfavorable.
$0.
$37,000 unfavorable.
$121,000 unfavorable.

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