A company had a standard sales price of $1.79 per unit and expected to sell 10,000 units. Due to a downturn in the economy, the product was marked down to $1.59 per unit and the company only sold 9,500 units. Calculate the sales price variance.Multiple choice question.$1,900 U$2,000 F$2,000 U$1,900 F

The sales price variance is calculated as follows:

1. First, calculate the actual revenue: $1.59 (actual price per unit) * 9,500 (actual units sold) =$15,105
2. Then, calculate the expected revenue: $1.79 (standard price per unit) * 9,500 (actual units sold) =$17,005
3. Subtract the actual revenue from the expected revenue to find the sales price variance: $17,005 -$15,105 = $1,900

The sales price variance is $1,900. Because the actual revenue is less than the expected revenue, the variance is unfavorable. So, the answer is$1,900 U.

The sales price variance is calculated as follows:

1. First, calculate the actual revenue: $1.59 (actual price per unit) * 9,500 (actual units sold) =$15,105
2. Then, calculate the expected revenue: $1.79 (standard price per unit) * 9,500 (actual units sold) =$17,005
3. Subtract the actual revenue from the expected revenue to find the sales price variance: $17,005 -$15,105 = $1,900

The sales price variance is $1,900. Because the actual revenue is less than the expected revenue, the variance is unfavorable. So, the answer is$1,900 U.