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Step by step please :)
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Step by step please :)

Step by step please :)-example-1
User GenError
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1 Answer

3 votes

Answer: $40000 unfavorable

Step-by-step explanation:

The sales volume variance for operating Income will be calculated as:

= Actual Unit Sold - Budgeted Unit Sales) × Standard Contribution Per Unit

= (72000 - 77000) × ($12 - $4)

= (72000 - 77000) × $8

= -5000 × $8

= $40000 Unfavourable

User James Carr
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