Marathon Sports Equipment Company projected sales of 81,000 units at a unit sales price of $14 for the year. Actual sales for the year were 75,000 units at $13.00 per unit. Variable costs were budgeted at $2 per unit, and the actual amount was $4 per unit. Budgeted fixed costs totaled $375,000, while actual fixed costs amounted to $425,000. What is the sales volume variance for total revenue?
A) $159,000 favorable
B) $159,000 unfavorable
C) $84,000 unfavorable
D) $84,000 favorable
C) $84,000 unfavorable
Explanation: Flexible budget sales = 75,000 × $14 = $1,050,000
Static budget sales = 81,000 × $14 = $1,134,000
Sales volume variance for
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