Determine the revenue budget variance

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Question - Oriole Toys, Inc. expected to sell one plush toy for each two Frisbees sold. Planned sales and variable costs for the year were as follows:

 

Frisbees

Plush Toys

Total

Sales (100,000 Frisbees)

$310,000

$155,000

$465,000

Variable costs

167,000

48,000

215,000

Contribution margin

$143,000

$107,000

$250,000

During the year, a competitor came out with a similar plush toy at a lower price. Management reacted by dropping its selling price for plush toys, but the results were disappointing. Actual sales were as follows:

Frisbees (95,000 x $3.40) $323,000

Plush toys [40,000 x $2.40) 96,000

Total sales $419,000

Required - Determine the revenue budget variance, the sales price variance, and the revenue sales quantity variance.

Reference no: EM132567217

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