Assume that Casio Computer Company, LTD. sells handheld communication devices fo

Question

Assume that Casio Computer Company, LTD. sells handheld communication devices for $120 during August as a back-to-school special. The normal selling price is $180. The standard variable cost for each device is $60. Sales for August had been budgeted for 500,000 units nationwide; however, due to the slowdown in the economy, sales were only 450,000.

Compute the revenue, sales price, sales volume, and net sales volume variances.

Incorrect
0.00 points out of 1.00

Correct
1.00 points out of 1.00

Incorrect
0.00 points out of 1.00

Correct
1.00 points out of 1.00

Incorrect
0.00 points out of 1.00

Correct
1.00 points out of 1.00

Incorrect
0.00 points out of 1.00

Revenue $Answer

Incorrect
0.00 points out of 1.00

AnswerFU

Correct
1.00 points out of 1.00

Sales Price $Answer

Incorrect
0.00 points out of 1.00

AnswerFU

Correct
1.00 points out of 1.00

Sales volume variance $Answer

Incorrect
0.00 points out of 1.00

AnswerFU

Correct
1.00 points out of 1.00

Net sales volume variance $Answer

Incorrect
0.00 points out of 1.00

AnswerFU

Explanation / Answer

Solution.

Revenue = 450,000 x $120 = 54,000,000

Sales price = $120

Sales volume = 450,000

Net sales volume variance =
Sales volume variance = (Actual units sold - Budgeted units sold) x Budgeted price per unit.

= ( 450,000 - 500,000 ) x $180

= $9,000,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.