CIMA BA2 · Chapter 7 · Question 9 of 14
A company sold 5,200 units for total revenue of $247,000. The standard selling price is $50 per unit. What is the sales price variance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $13,000 adverse
Explanation
Standard revenue for actual sales = 5,200 x $50 = $260,000. Actual revenue = $247,000. Sales price variance = $247,000 - $260,000 = $13,000 adverse, because the average actual price ($47.50) was below standard.
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