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Fill in the Blank QuestionFill in the blank question.Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 and budgeted price per unit is $15.75. The sales price variance is $.

Question

Fill in the Blank QuestionFill in the blank question.Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is 15andbudgetedpriceperunitis15 and budgeted price per unit is 15.75. The sales price variance is $.

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Solution

The sales price variance is calculated as follows:

Sales Price Variance = (Actual Selling Price - Budgeted Selling Price) * Actual Quantity Sold

Here, the Actual Selling Price is 15,theBudgetedSellingPriceis15, the Budgeted Selling Price is 15.75, and the Actual Quantity Sold is 5,000 units.

So, the Sales Price Variance = (1515 - 15.75) * 5,000 = -$3,750.

Therefore, the sales price variance is -$3,750. This is a negative variance, indicating that the actual selling price was lower than the budgeted selling price, resulting in less revenue than expected.

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