Final answer:
To solve for the planned units to be sold using the revenue volume variance formula, the difference between the revenue planned and revenue actually achieved is analyzed. Specific data is required to perform the calculation, and in the broader business context, understanding how total revenue and conversion factors work is essential.
Step-by-step explanation:
When solving for the unknown planned units to be sold using the revenue volume variance formula, we base our calculation on the relationship: Total Revenue = Price × Quantity. The formula given in the question is (planned units to be sold - actual units sold) × planned selling price, which reflects the difference between the revenue that a company planned to generate and the revenue it actually generated. To solve for the unknown planned units to be sold, you would typically need the revenue volume variance and the planned selling price. Then, you can rearrange the formula to solve for the planned units to be sold.
In a broader context, when considering changes in total revenue, it's acknowledged that total revenue is the income a firm generates from selling its products. For instance, in a perfectly competitive market, a firm can sell any number of units at the market price, showing that the firm faces a perfectly elastic demand curve.
To perform a conversion from one unit to another, a conversion factor is applied: quantity (in old units) × conversion factor = quantity (in new units). This method is critical to master for complex problems that arise in various academic and professional settings.