Question

Marsh, Inc. provides the following​ information: Actual Sales Static Budget Flexible Budget Sales Volume Variance Sales Revenue ​$560,000 ​$535,000 ​$450,000 ​? Calculate the sales volume variance.

Answer 1

Sales volume variance is $ 85,000

Step-by-step explanation:

Given data:

Actual Sales Static Budget Flexible Budget Sales

Sales Revenue: $560,00 $535,000 ​$450,000 ​

​now,

the sales volume variance is calculated as:

Sales volume variance = Static budget variance - Flexible budget variance

on substituting the values in the above relation, we get

Sales volume variance = $ 535,000 - $ 450,000

or

Sales volume variance = $ 85,000

hence, the sales volume variance is $ 85,000