Question

Butte Truck Company specializes in selling used trucks. During the first six months of 2015, the dealership sold 50 trucks at an average price of $18,000 each. The budget for the first six months of 2015 was to sell 45 trucks at an average price of $19,000 each. Compute the dealership's sales price variance and sales volume variance for the first six months of 2009.

Answer 1

Answer:

$50,000 U

Explanation:

Computation of the dealership's sales price variance and sales volume variance for the first six months of 2009.

Using this formula

Sales Price Variance = (Difference between budget price and actual price) x Actual qty sold.

Sales Price Variance= ($19,000 - $18,000) x 50 cars

Sales Price Variance= 1000*50

Sales Price Variance= $ 50,000 U

Therefore the dealership's sales price variance and sales volume variance for the first six months of 2009 is $ 50,000 U