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If 2,100 units were sold, what is the sales price variance?
Accounting
ScanSolve AI Answer
Answer
\text{C } \420 \text{ adverse}$
Step-by-step solution
3 stepsTo calculate the sales price variance, we need to compare the actual selling price per unit with the budgeted selling price per unit, multiplied by the actual quantity sold.
Determine the actual selling price per unit.
The actual sales revenue was
\10,080$ for 2,100 units sold.Calculate the sales price variance.
The budgeted selling price per unit was
\5$.Determine if the variance is favourable or adverse.
Since the actual selling price per unit (
\4.80$5.00$), the variance is adverse.The sales price variance is
\420$ adverse. This corresponds to option C.The final answer is
\boxed{\text{C } \420 adverse}$.
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