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Revenue variances a . Compute the normal revenue with a $ 2 0 selling price. b . Compute the planned revenue with a $ 1
Revenue variances
a Compute the normal revenue with a $ selling price.
b Compute the planned revenue with a $ selling price.
$
c Compute the actual revenue for November, assuming units were sold in November at $ per unit.
$
d Compute the revepue arice variance assumina Opo units were sold in November at $ per unit.
e Compute the revenue volume variance, assuming units were sold in November at $ per unit.
$ Unfavorable
f Analyze and interpret the lowering of the price to $
Decreasing the selling price to $ did
total revenue, but it did not
the revenues by 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.
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