Question - XYZ Company's budget and actual results are as follows:
Master Budget: Price=$300; Sales Volume=6,000; Unit VC=$100; Fixed Costs=$250,000
Actual Results: Price=$350; Sales Volume=4,500; Unit VC=$100; Fixed Costs=$250,000
The Budgeted and Actual Revenue, Costs, and Profits are as follows:
Master Budget: Sales Volume (units) = 6,000; Revenue = $1,800,000; Variable Costs = $600,000; Contribution Margin = $1,200,000; Fixed Costs = $250,000; Profit = $950,000
Actual Budget: Sales Volume (units) = 4500; Revenue = $1,575,000; Variable Costs = $450,000; Contribution Margin = $1,125,000; Fixed Costs = $250,000; Profit = $875,000
What is the Sales Volume Variance and Sales Price Variance?