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A company sells two products x and y. Product x sells for 30 per unit and achieves a standard contribution of 12 per unit which is 40% of the selling price. Product y a new product sells for 80 per unit and achieves a standard contribution of just 10 per unit which is 12.5% of the selling price. Budgeted sales are 5000 units of x and 3000 units of y. However, the sudden cancellation of an advertising campaign for product y has meant that sales for the product will be well below budget, and there has been some price discounting in an attempt to obtain sales for the product. Sales of x were in line with the budget.
Which sales variance, if calculated would you expect to show a favourable variance for the period.
Which variance is it and how is it calculated for this question. Also why other sales variances not the correct answerYou have printed answers in the same book in which you found the question and so I do not understand why you are asking me to repeat the printed answer.
You say that you have watched my free lectures, but I am not sure that is actually the case. If it is then I suggest that you watch them again.
You have asked 10 questions today and are treating this forum as a place to get private tuition, which we do not provide.
From now on I am only prepared to answer 3 questions a day from you. Any others will be deleted.
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