Calculate the sales price and sales volume variance? Radek Ltd has budgeted sales of 400 units at $2.50each. The variable costs are expected to be $1.80 perunit, and there are no fixed costs. The actual sales were500 units at $2 each and costs were as expected.Calculate the sales price and sales volume variances(using marginal costing).

Step 1: Define Marginal CostingIn the method recognized as marginal costing, the VC (variable costs)…

Answered: Radek Ltd has budgeted sales of 400…

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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Radek Ltd has budgeted sales of 400 units at $2.50 each. The variable costs are expected to be $1.80 per unit, and there are no fixed costs. The actual sales were 500 units at $2 each and costs were as expected. Calculate the sales price and sales volume variances (using marginal costing).