Can you explain the solution below ? how did they calculate the sales revenue ? It doesn't make sense if they sold them at 36.00 I'm confused Marigold Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,420 kits was prepared for the year. Fixed operating expenses account for 57% of total operating expenses at this level of sales. Sales $ 71,000 Cost of goods sold (all variable) 42,600 Gross margin 28,400 Operating expenses 24,850 Operating income $ 3,550 Assume that Marigold Sports actually sold 1,491 volleyball kits during the year at a price of $36 per kit.Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Flexible Budget Sales Volume Variance Static Budget Unit Sales 1491 71 UnfavorableFavorableNot Applicable f 1420 Sales revenue $ 74550 $ 3550 Not ApplicableFavorableUnfavorable f $ 7100 Cost of goods sold 44730 2130 UnfavorableNot ApplicableFavorable u 42600
Can you explain the solution below ? how did they calculate the sales revenue ? It doesn't make sense if they sold them at 36.00 I'm confused Marigold Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,420 kits was prepared for the year. Fixed operating expenses account for 57% of total operating expenses at this level of sales. Sales $ 71,000 Cost of goods sold (all variable) 42,600 Gross margin 28,400 Operating expenses 24,850 Operating income $ 3,550 Assume that Marigold Sports actually sold 1,491 volleyball kits during the year at a price of $36 per kit.Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Flexible Budget Sales Volume Variance Static Budget Unit Sales 1491 71 UnfavorableFavorableNot Applicable f 1420 Sales revenue $ 74550 $ 3550 Not ApplicableFavorableUnfavorable f $ 7100 Cost of goods sold 44730 2130 UnfavorableNot ApplicableFavorable u 42600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you explain the solution below ? how did they calculate the sales revenue ? It doesn't make sense if they sold them at 36.00 I'm confused
Marigold Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,420 kits was prepared for the year. Fixed operating expenses account for 57% of total operating expenses at this level of sales.
Assume that Marigold Sports actually sold 1,491 volleyball kits during the year at a price of $36 per kit.
Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
| Sales | $ | 71,000 | ||
| Cost of goods sold (all variable) |
|
42,600 | ||
| Gross margin | 28,400 | |||
| Operating expenses |
|
24,850 | ||
| Operating income | $ | 3,550 |
Assume that Marigold Sports actually sold 1,491 volleyball kits during the year at a price of $36 per kit.
Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
| Flexible Budget | Sales Volume Variance | Static Budget | ||||||
| Unit Sales |
1491
|
71
|
UnfavorableFavorableNot Applicable
|
f |
1420
|
|||
| Sales revenue | $
74550
|
$
3550
|
Not ApplicableFavorableUnfavorable
|
f | $
7100
|
|||
| Cost of goods sold |
44730
|
2130
|
UnfavorableNot ApplicableFavorable
|
u |
42600
|
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