Coronado Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on salesof 2,500 kits was prepared for the year. Fixed operating expenses account for 65% of total operating expenses at this level of sales.Sales$ 275,000Cost of goods sold (all variable)268,800Gross margin6,200Operating expenses28,350Operating income$ - 22,150Assume that during the year Coronado Sports actually sold 2,700 volleyball kits during the year at a price of $ 113 per kit.Calculate the sales price variance. (If variance is zero, select "Not Applicable" and enter O for the amounts.)$Sales price variance%24

Sales price variance = (Actual sales price - Budgetd sales price)*Actual sales volume

Answered: Coronado Sports sells volleyball kits…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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