Classic British Sports Cars, Inc. specializes in maintaining and restoring sports cars from the 1960s and relies on a flexible budget. For January, 2012, the company projected that its revenue would be $100,000 based on 500 repair jobs at an average cost of $300 and 50 restoration jobs at an average cost of $2,000. Actual revenue for January was $268,000. Is that a favorable or unfavorable variance? What different factors could account for that variance? How should the company adjust its projections as a result of this variance?
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