Question
A firm plans to sell 1,000 units of its only product at a price of $20 per unit, with variable manufacturing costs of $8 per
A firm plans to sell 1,000 units of its only product at a price of $20 per unit, with variable manufacturing costs of $8 per unit and fixed manufacturing costs of $2 per unit. Expected SGA costs were $3 per unit (variable) and $1 per unit (fixed). Actual sales were 1,280 units. What was the firm's sales volume variance?
Enter your answer without a dollar sign or commas, and round to the nearest dollar (if necessary). A favorable variance should be entered as a positive number (e.g, 100) and an unfavorable variance should be entered as a negative number (e.g. -100).
I have tried this problem twice already and got to seperate answers that were both wrong. The answer is not $3,360 Favorable or $1,360 Favorable.
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