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 8% of total operating expenses at this level of sales. Sales $ 400,000 Cost of goods sold (all variable) Gross margin 153,600 246,400 Operating expenses 3,500 Operating income $ 242,900 Assume that during the year Vaughn Sports actually sold 2,700 volleyball kits during the year at a price of $161 per kit. Calculate the sales price variance. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Sales price variance %24
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 8% of total operating expenses at this level of sales. Sales $ 400,000 Cost of goods sold (all variable) Gross margin 153,600 246,400 Operating expenses 3,500 Operating income $ 242,900 Assume that during the year Vaughn Sports actually sold 2,700 volleyball kits during the year at a price of $161 per kit. Calculate the sales price variance. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Sales price variance %24
Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
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Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...
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Please provide and explanation along with the answer
![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 8% of total operating expenses at this level of sales.
Sales
$ 400,000
Cost of goods sold (all variable)
153,600
Gross margin
246,400
Operating expenses
3,500
Operating income
$ 242,900
Assume that during the year Vaughn Sports actually sold 2,700 volleyball kits during the year at a price of $161 per kit.
Calculate the sales price variance. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
Sales price variance
eTextbook and Media
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8255d54-aefa-4b8b-a065-03d53f3686c6%2F0a4245ad-0aa8-4e7c-b66c-303513edeb5a%2Fqapjdn_processed.png&w=3840&q=75)
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 8% of total operating expenses at this level of sales.
Sales
$ 400,000
Cost of goods sold (all variable)
153,600
Gross margin
246,400
Operating expenses
3,500
Operating income
$ 242,900
Assume that during the year Vaughn Sports actually sold 2,700 volleyball kits during the year at a price of $161 per kit.
Calculate the sales price variance. (If variance is zero, select "Not Applicable" and enter O for the amounts.)
Sales price variance
eTextbook and Media
%24
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