Smallville Inc. sells Superman jerseys. Last year they budgeted sales of 20,000 jerseys and sold 15,000 despite reducing the selling price from $50 to $45.
Required: Compute the revenue sales-price and revenue sales-volume variances and use them to reconcile the difference between budgeted and actual revenue.

Question

Quizplus · Accepted Answer

The Answer of Smallville Inc. sells Superman jerseys. Last year they budgeted sales of 20,000 jerseys and sold 15,000 despite reducing the selling price from $50 to $45.
Required: Compute the revenue sales-price and revenue sales-volume variances and use them to reconcile the difference between budgeted and actual revenue.