QUESTION 3 Not completePoints out of 8.00P Flag question Sales Variances Assume

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QUESTION 3 Not completePoints out of 8.00P Flag question Sales Variances Assume that Casio Computer Company, LTD. sells handheld communication devices for $110 during August as a back-to- school special. The normal selling price is $160. The standard variable cost for each device is $60. Sales for August had been budgeted for 60 00 units nationwide: howeer.du totheslodownintheeconomy, saleswereon?y55aooo. Compute the revenue, sales price, sales volume, and net sales volume variances. Revenue variance Sales price ariance Sales volume variance Net sales volume variance $

Explanation / Answer

Sales revenue variance is =(Budgeted sales units * selling price ) - ( Actual sales units * Actual selling price )

That is = (600000*160)-(550000*110)

Revenue variance is = (96000000-60500000)

Revenue variance is $ 35,500,000 Favorable.

Sales price variance is = (160-110)*550000

Sales price variance is $ 27,500,000/- Favourable.

Sales volume variance is = (600000-550000)*160 = $ 80,000,000/- Favourable

Net sales volume variance is = (160-60)*(600000-550000) = 100*50000 = $ 5,000,000/- Favorable

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