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Question - Carol's Candy expects to manufacture and sell 3,000 boxes of candy at 20 per box during December year 2. The company expects a contribution margin of 25% and has budgeted fixed costs of 10,000. What is the variable cost variance if Carol manufactures and sells 4,500 boxes of candy for 88,000, has variable costs of 67,500 and incurs fixed costs and 12,500 in December?
a. 3000 favorable
b. 2500 favorable
c. 0
d. 2500 unfavorable
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