A company uses variance analysis to control costs and revenues.
Information concerning sales is as follows:
Budgeted selling price
$15 per unit
Budgeted sales units
10,000 units
Budgeted profit per unit
$5 per unit
Actual sales revenue
$151,500
Actual units sold
9,800 units
What is the sales volume profit variance?
The correct answer is: $1,000 adverse
Budgeted sales volume
units
Actual sales volume
Sales volume variance (units)
units (A)
x standard profit per unit
Sales volume profit variance (in $)
(A)
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