Reference no: EM131638615
Question - NaLu Company sells footballs and shoulder pads. For 2013, company management budgeted the following:
Footballs Shoulder Pads
Sales Revenue $1,200,000 $1,800,000
Unit Sales Price $60 $45
At the end of 2013, management was told that actual sales of footballs were 21,000 units and the sales price variance was $63,000 unfavorable. Sales of shoulder pads generated $1,680,000 revenue, with an unfavorable sales volume variance of $360,000.
a. Compute the budgeted sales volume for each product.
b. Compute the sales volume variance for footballs.
c. Compute the sales price variance for shoulder pads.
d. What conditions might have contributed to the revenue variances?
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