Sales quantity variance

They budget on selling 7,000 X's and 3,000 Y's - 10,000 units in total. The actually sold a total of 15,000 units, and so if they had mixed them in the correct way, this would have been 7/10 x 15,000 = 10,500 X's, and 3/10 x 15,000 = 4,500 Y's. The quantity variance is only looking at the difference in the total quantity (ignoring the fact that we changed the proportions - this is the mix variance). If you cost out the budget (7,000 and 3,000) and the standard mix for the actual total (10,500 and 4,500) - in both cases at standard contribution per unit - then you will have the quantity variance.

Thanks John, I now get it. The sales quantity variance is; Budgeted sales in total 10,000 units Actual sales in total 15,000 units _________ Sales quantity Variance in units 5,000 (F) standard weighted average contribution per unit $9.90 _________ Sales qty. variance in $ $49,500

Yes - thats correct :-)