(Revenue variances) Good Life Products Inc. manufactures two products: purses and fur-lined, elbow-length gloves. For 1998, the firm budgeted the following:

At the end of 1998, managers were informed that total actual sales amounted to 35,000 units and totaled $1,225,000. Glove sales for the year amounted to 20,000 units at an average price of $35.

a. Compute the total revenue variance for 1998.

b. Compute the price variance for 1998.

c. Compute the mix variance for 1998.

d. Compute the volume variance for 1998.
PART' VI Decision Making

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PURSES GLOVES Sales $400,000 $600,000 Unit sales price 40 30