Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bramble Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,560 kits was prepared
Bramble Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,560 kits was prepared for the year. Fixed operating expenses account for 62% of total operating expenses at this level of sales.
Sales | $ | 78,000 | ||
Cost of goods sold (all variable) |
| 46,800 | ||
Gross margin | 31,200 | |||
Operating expenses |
| 27,300 | ||
Operating income | $ | 3,900 |
Assume that during the year Bramble Sports actually sold 1,638 volleyball kits during the year at a price of $37 per kit. Calculate the sales price variance. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Sales price variance = |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started