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zysi [14]
3 years ago
7

If actual sales totaled $500,000 for the current year (40,000 units at $12.50 each) and planned sales were $495,000 (45,000 unit

s at $11.00 each), the difference between actual and planned sales due to the unit price factor is A. $60,000 increase. B. $55,000 decrease. C. $20,000 increase.
Business
1 answer:
irina [24]3 years ago
4 0

Answer: <u>The answer is A. $60,000 increase.</u>

<u />

Explanation: 1: The actual units sold multiplied by the budgeted sale price is equal to a total of $440000 (40000 x 11 = $ 440000)

2: The actual units sold multiplied by the actual sale price is equal to $500000 (40,000 x 12.5 = $ 500,000)

3:<u> $500000 - $440000 = </u><u>$60000</u><u> increase by the unit price factor.</u>

<u />

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