Answer:
A. $3,000
B. -$1,250
Explanation:
1. Quantity Factor
Mathematically, the quantity factor can be calculated as follows:
(Actual sales - Planned sales) * Planned sales price
From the values in the question, we identify the golly:
Actual sales = 4,000 + 1,000 = 5,000
Planned sales = 4,000
Planned sales price = $3
Quantity factor = (5,000-4,000) * $3 = $3,000
2. Price factor for sales
Mathematically, this can be calculated as:
Price factor for sales = (Actual selling price per unit - Planned selling price per unit) * Actual units sold
From the question, we can identify the values as follows:
Actual selling price per unit = $2.75
Planned selling price per unit = $3
Actual units sold = 5,000
Price factor for sales = (2.75-3) * 5,000 = -$ 1,250
