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18 May, 05:35

Claremont company specializes in selling refurbished copiers. during the month, the company sold 210 copiers for total sales of $756,000. the budget for the month was to sell 205 copiers at an average price of $3,800. the sales price variance for the month was:

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  1. 18 May, 05:46
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    The sales price variance is computed by:

    (actual sales price-standard/budgeted sales price) x actual units sold

    In this case, the actual price is $3600 and the standard price is $3800 and the actual unit sold is 210 copiers

    Therefore:

    ($3600-$3800) x210=$42000 unfavorable sales price variance because you can sell the copier at a higher price of 3800 than the actual price of 3600
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