Answer:
Sales volume variance $2,380 favorable. The net effect on profit of AR-10's sales is that it will increase profit by $2,380
Explanation:
The sales volume variance is calculated as the difference between the budgeted and the actual sales volume multiplied by he standard profit per unit
Standard profit per unit = 6,120/3,600=$1.7
Unit
Budgeted sales units 3,600
Actual sales units <u> 5,000 </u>
Sales volume 1,400
Standard profit per unit <u> × $1.7</u>
Sales volume variance <u> 2,380 </u>Favorable
Sales volume variance $2,380 favorable
The net effect on profit of AR-10's sales is that it will increase profit by $2,380