Exercise 6-3

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.

Sales price variance

$