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ughn Sports sells voll

ughn Sports sells voll

FINANCIAL ACCOUNTING
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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Vaughn Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,500 kits was prepared for the year. Fixed operating expenses account for 62% of total operating expenses at this level of sales. Sales Cost of goods sold (all variable) Gross margin Operating expenses Operating income $ 450,000 316,800 133,200 26.950 $ 106,250 Assume that during the year Vaughn Sports actually sold 2,700 volleyball kits during the year at a price of $183 per kit. Calculate the sales price variance. (If varlance is zero, select "Not Applicable and enter O for the amounts) Sales price variance Not Applicable
Transcribed Image Text:Vaughn Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,500 kits was prepared for the year. Fixed operating expenses account for 62% of total operating expenses at this level of sales. Sales Cost of goods sold (all variable) Gross margin Operating expenses Operating income $ 450,000 316,800 133,200 26.950 $ 106,250 Assume that during the year Vaughn Sports actually sold 2,700 volleyball kits during the year at a price of $183 per kit. Calculate the sales price variance. (If varlance is zero, select "Not Applicable and enter O for the amounts) Sales price variance Not Applicable
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