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Somerville Corp typically sells computer chips for $250 each. To try to increase sales they run a buy one get one free offer for month.
Somerville Corp typically sells computer chips for $250 each. To try to increase sales they run a buy one get one free offer for month. The budgeted sales for the month were 200 units. Due to the sale, they sell 400 total units (200 at regular cost and 200 free). The direct materials costs per chip is $50 and the direct labor costs are $75. The sales spending and sales volume variances are: O a Sales spending variance $50,000 F, Sales volume variance $50,000 U Ob Sales spending variance $25,000 F, Sales volume variance $25,000 F O Sales spending variance $25,000 u, Sales volume variance $25,000 U O d. Sales spending variance $50,000 U, Sales volume variance $50,000 F
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