Rogers Sports sells volleyball kits that it purchases from a sports equipment di
ID: 2416810 • Letter: R
Question
Rogers Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Sales $100,000, Cost of Goods Sold (all variable) $60,000, Gross Margin $40,000, Operting Expenses $35,000, Operating Income $5,000. Fixed operating expenses account for 80% of total operating expenses at this level of sales.Assume that during the year Rogers Sports actually sold 2,100 volleyball kits during the year at a price of $48 per kit. Calculate the sales price variance.
Explanation / Answer
Sale Price variance
Sales Price Variance is the measure of change in sales revenue as a result of variance between actual and standard selling price.
Budgeted Sales ($) 100000 Budgeted Sales(Units) 2000 Standard Price per unit 50 Actual Price(a) Standard Price(b) c=a-b Actual Units sold Total Variance Volleball Kits 48 50 2 2100 4200 (Adverse)Related Questions
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