Explain using sales volume variance

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Suppose ABC Inc. sells a single product with a budgeted contribution margin of $10 per unit.
Suppose that it planned to sell 15 products during the year.
Now suppose that ABC sold 12 units of product at a contribution margin of $12 per unit.

Problem 1: Explain the above using sales volume variance and flexible budget variance.

Budgeted Profit: 150 Actual Profit 144
Master Budget Variance 6 Unfavourable
Flexible Budget Variance: 24 Favourable (Actual units sold * difference between budgeted and actual profit
Sales Volume Variance 30 Unfavourable - actual sales volume was lowerr than budgeed (12 units vs 15 units)

Reference no: EM133009896

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