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Oriole Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,500 kits was prepared
Oriole Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,500 kits was prepared for the year. Fixed operating expenses account for 70% of total operating expenses at this level of sales.
Sales | $ | 325,000 | ||
Cost of goods sold (all variable) |
| 191,360 | ||
Gross margin | 133,640 | |||
Operating expenses |
| 30,450 | ||
Operating income | $ | 103,190 |
Assume that during the year Oriole Sports actually sold 2,700 volleyball kits during the year at a price of $132 per kit. Calculate the sales price variance
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