Milltown Company specializes in selling used cars. During the month, the dealership sold 22 cars at an average price of $15,000 each. The budget for the month was to sell 20 cars at an average price of $16,000. Compute the dealership's total sales variance for the month.
A) $22,000 unfavorable.
B) $10,000 favorable.
C) $22,000 favorable.
D) $32,000 unfavorable.
E) $32,000 favorable.
B) $10,000 favorable.
Explanation: Actual = 22 * $15,000 = $330,000; Budgeted sales = 20 * $16,000 = $320,000
Total Sales Variance = $10,000 favorable
You might also like to view...
Which of the following allows for a logical and easy way to plan the organization of a message?
A) Direct organization B) Outlining C) Topic sentences D) Revising E) Drafting
Currently (2018), mergers can be accounted for using either the purchase method or the pooling method.
Answer the following statement true (T) or false (F)
When a note is written to settle an open account, no entry is necessary
Indicate whether the statement is true or false
A retailer that utilizes a form of organization that allows branch personnel to order merchandise classifies jobs through a geographic classification system
Indicate whether the statement is true or false