Question

If actual sales totaled $450,000 for the current year (30,000 units at $15 each) and planned sales were $540,000 (45,000 units at $12 each), the difference between actual and planned sales due to the unit price factor is a.$180,000. b.$45,000. c.$90,000. d.$225,000.

Answer 1

Option B, $45,000, is the right answer.

Step-by-step explanation:

Given actual sales = $450000

Actual units that is sold = 30000 units

Actual selling price = $15 per unit

Planned sales = $540000

Planned units = 45000

Planned selling price = $12 per units.

The difference between actual and planned sales due to unit price factor = change in units × change in price

= (45000 – 30000) × (15 – 12)

= $45000

Thus option B is correct.