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the marketing manager of hodgson industrial design estimates that the company can se 665060

The marketing manager of Hodgson Industrial Design estimates that the company can sell 25,000 blue widgets for $65 per unit during the upcoming year. This estimate is based on the historical demand for blue widgets, as supported by new advertising campaigns in the first and third quarters of the year.

During the new year, Hodgson does not have a first quarter advertising campaign, since it is changing advertising agencies at that time. This results in sales of just 21,000 blue widgets during the year. Its sales volume variance is:

(21,000 Units sold 25,000 Budgeted units) x $65 Budgeted price per unit = $260,000 Unfavorable sales volume variance

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