Final answer:
An unfavorable sales volume variance and a favorable sales price variance in a marketing department indicate selling fewer units than expected but at a higher price. A deeper analysis is necessary to understand the strategies and market conditions influencing these results.
Step-by-step explanation:
Minnie Drivers, the manager of the marketing department, received mixed performance variances with an unfavorable sales volume variance and a favorable sales price variance. The unfavorable sales volume variance indicates that the actual quantity of goods sold was less than expected. However, the favorable sales price variance suggests that the actual selling price was higher than planned. To interpret her overall performance, one needs to consider both variances. If the positive impact of the favorable sales price variance outweighs the negative impact of the unfavorable sales volume variance, it could suggest that, despite selling fewer units, the marketing department successfully implemented pricing strategies leading to higher profits on the units sold. Conversely, if the unfavorable sales volume has a more significant impact, it could indicate that despite higher prices, the lower quantity sold could harm overall profitability. This scenario requires a deeper analysis to determine the net effect on profitability and what these variances say about the marketing department's strategy and market conditions. It's also crucial to assess the reasons behind these variances, as they could stem from internal decisions or external market factors.