SG Co budgeted to make and sell 900 units of product
M、during September. The standard selling price per unit of
M、is $27. At the beginning of September, a new competitor entered the market and SG Co was forced to reduce the selling price in order to maintain sales volumes. By the end of September, 900 units had been sold for a total of $18,000. In retrospect it is decided that a realistic standard selling price for September, given the unexpected extra competition, was $18 per unit. Calculate the sales price planning variance. $ ______Adverse / Favourable (select the correct option)
M、during September. The standard selling price per unit of
M、is $27. At the beginning of September, a new competitor entered the market and SG Co was forced to reduce the selling price in order to maintain sales volumes. By the end of September, 900 units had been sold for a total of $18,000. In retrospect it is decided that a realistic standard selling price for September, given the unexpected extra competition, was $18 per unit. Calculate the sales price planning variance. $ ______Adverse / Favourable (select the correct option)
【参考答案及解析】
The correct answer is: 8,100 Adverse. Original standard selling price per unit $27 Revised standard selling price per unit $18 Planning variance per unit $9 (A) × sales volume in units × 900 Sales price planning variance $8,100 (A)
The correct answer is: 8,100 Adverse. Original standard selling price per unit $27 Revised standard selling price per unit $18 Planning variance per unit $9 (A) × sales volume in units × 900 Sales price planning variance $8,100 (A)