Highlight F Strikethrough A company sells two products and has calculated the following information relating to sales variances: Sales mix variance $1,000 Sales price variance $200F Sales volume variance = $1,400A There is no indication as to whether the sales mix variance is adverse or favourable but it was caused by a lower proportion of the more profitable item being sold. What is the sales quantity variance? $200 Adverse $400 Adverse $2,400 Adverse $400 Favourable

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 19E: Data for Torleson Company are as follows: Required: 1. Calculate the sales price variance. 2....
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A company sells two products and has calculated the following information relating to sales variances:
Sales mix variance = $1,000
Sales price variance = $200F
Sales volume variance = $1,400A
There is no indication as to whether the sales mix variance is adverse or favourable but it was caused by a lower proportion of the more profitable item being sold.
What is the sales quantity variance?
$200 Adverse
$400 Adverse
$2,400 Adverse
$400 Favourable
Transcribed Image Text:Highlight T Strikethrough Calculator A company sells two products and has calculated the following information relating to sales variances: Sales mix variance = $1,000 Sales price variance = $200F Sales volume variance = $1,400A There is no indication as to whether the sales mix variance is adverse or favourable but it was caused by a lower proportion of the more profitable item being sold. What is the sales quantity variance? $200 Adverse $400 Adverse $2,400 Adverse $400 Favourable
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