In response to poor sales, the sales manager of As a result, the operating statement at the end of the period shows the following: Sales price variance: £13,000 Adverse Sales volume varlance: £14,000 Favourable Sales quantity variance: E5,000 Favourable Which of the explanations below fits these variances? O Costs will have decreased given volumes have reduced. O Customers chose a less profitable mix than the budget anticipated. O A price reduction may have driven an overall increase in contribution. Prices have increased as the price variance is adverse.
In response to poor sales, the sales manager of As a result, the operating statement at the end of the period shows the following: Sales price variance: £13,000 Adverse Sales volume varlance: £14,000 Favourable Sales quantity variance: E5,000 Favourable Which of the explanations below fits these variances? O Costs will have decreased given volumes have reduced. O Customers chose a less profitable mix than the budget anticipated. O A price reduction may have driven an overall increase in contribution. Prices have increased as the price variance is adverse.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:In response to poor sales, the sales manager of TJG Ltd has changed the pricing strategy to try and improve revenues and profits.
As a result, the operating statement at the end of the period shows the following:
Sales price variance: £13,000 Adverse
Sales volume variance: £14,000 Favourable
Sales quantity variance: E5,000 Favourable
Which of the explanations below fits these variances?
O Costs will have decreased given volumes have reduced.
O Customers chose a less profitable mix than the budget anticipated.
A price reduction may have driven an overall increase in contribution.
O Prices have increased as the price variance is adverse.
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