Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In May 2019, ABC Inc., plans to sell 1,000 units of its only product for $250 per unit and gain contribution of $140 per unit.
In May 2019, ABC Inc., plans to sell 1,000 units of its only product for $250 per unit and gain contribution of $140 per unit. After fixed costs of $84,000, it forecasted profit of $26,000. Actual results are that ABC sold 1,050 units of the product for $245 per unit. Its realized fixed cost was $84,500 and actual profit was $27,000. What is the firm's sales price variance for May 2019? Enter a favorable (unfavorable) variance as a positive (negative) number.
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