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Sagot :
Actual sales volume for a period is [tex]5,000[/tex] units. budgeted sales volume is [tex]4,500[/tex]. actual selling price per unit is $[tex]15[/tex] and budget price per unit is $[tex]15. 75[/tex]. the sales price variance is $[tex]3,750[/tex]
Sales Price Variance:
The term "sales price variation" describes the discrepancy between a company's anticipated price for a good or service and the amount that was actually paid for it.
Reduced competition, higher sales price realization, general inflation, a sudden rise in product demand, etc. are a few potential reasons for a favorable sales price variance.
Sales Price Variance = (Actual Sale Price – Standard Sale Price) × Actual Quantity Sold.
Calculation of the Sales Price Variance :-
Sales Price Variance = ( Actual price [tex]-[/tex] Budgeted price)× Actual quantity
Sales Price Variance = [tex]( $15 - $15.75) * 5,000[/tex]
Sales Price Variance = $[tex]3,750[/tex] Unfavorable.
Learn more about Sales Price Variance here
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