Western Outfitters Mountain Sports projected 2011 sales of 75,000 units at a unit sale price of $12.00. Actual 2011 sales were 72,000 units at $14.00 per unit. Variable costs were budgeted at $4.00 per unit; actual amount was $4.75 per unit. Budgeted fixed costs totaled $375,000 while actual fixed costs amounted to $400,000. What is the sales volume variance for operating income?

Question

Quizplus · Accepted Answer

B) Calculations:
(75,000 × $12) - (75,000 × $4.00) - $375,000 = $225,000
(72,000 × $12) - (72,000 × $4.00) - $375,000 = $201,000
$225,000 - $201,000 = $24,000

Western Outfitters Mountain Sports Projected 2011 Sales of 75,000 Units