Revenue variances

a$.$ Compute the normal revenue with a $$20$ selling price.

b$.$ Compute the planned revenue with a $$19$ selling price.

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c$.$ Compute the actual revenue for November, assuming $125,000$ units were sold in November at $$19$ per unit.

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d$.$ Compute the revepue arice variance assumina $135$ Opo units were sold in November at $$19$ per unit.

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e$.$ Compute the revenue volume variance, assuming $135,000$ units were sold in November at $$19$ per unit.

$ $q,x$ Unfavorable $$

f$.$ Analyze and interpret the lowering of the price to $$19.$

Decreasing the selling price to $$19$ did

$$ total revenue, but it did not $!$

the revenues by $16\%$ as planned.

Foedback

T Check My Work

$$ Normal revenue is computed using the normal selling prices and normal units sold.

b$.$ Planned revenue is computed using the planned selling price and planned units sold.

Actual Revenue for November is computed using the actual selling price and actual units sold.

d$.$ For the computation of the Revenue Price Variance, use planned and actual selling prices and the actual units sold.

$$ For the computation of the Revenue Volume Variance, use planned and actual units sold and the planned selling price.

$$ Consider whether lowing the selling price creates a favorable or an unfavorable revenue volume variance.