Calculate the three main revenue variances for the Product A

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Question - Variance Analysis - Neverland Company sells two products - A and B.

These two products are often sold in groups (e.g., some customers buy 1 A and 2 Bs; some customers buy 3 As and 2 Bs; etc.).

The following information applies to the two products:

 

A

B

Budgeted sales in units

27,936

10,864

Budgeted selling price (unit)

$ 20

$ 33

Actual sales in units

28,200

8,400

Actual selling price (unit)

$ 23

$ 31

Required - Calculate the three main revenue variances for the Product A. Be sure to label the variances by name, as well as "favorable" or "unfavorable." If there is insufficient information to calculate any of the variances, please denote that clearly.

Reference no: EM132876152

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