Data for Torleson Company are as follows: Budgeted price..........................................$15.00 Actual price..............................................$14.80 Budgeted quantity.......................................1,450 Actual quantity sold ....................................2,500

Question:

Data for Torleson Company are as follows:
Budgeted price..........................................$15.00
Actual price..............................................$14.80
Budgeted quantity.......................................1,450
Actual quantity sold ....................................2,500
Required:
1. Calculate the sales price variance.
2. Calculate the sales volume variance.
3. Suppose that the product is in the introductory stage of the product life cycle. What information do these two variances provide to Torleson's managers?