Grogu Ltd. had a favourable sales price variance of $873 for 2022. The company had budgeted for sales of 8,000 units at a sales price of $4 each. Actual sales in 2022 totalled 10,000 units. What was the actual sales price per unit in 2022? (enter your answer to 2 decimal places)
Question
Grogu Ltd. had a favourable sales price variance of 4 each. Actual sales in 2022 totalled 10,000 units.
What was the actual sales price per unit in 2022? (enter your answer to 2 decimal places)
Solution
To find the actual sales price per unit in 2022, we need to follow these steps:
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Calculate the total budgeted sales revenue: This is done by multiplying the budgeted sales units by the budgeted sales price per unit. So, 8,000 units * 32,000.
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Calculate the total actual sales revenue: This is done by adding the favourable sales price variance to the total budgeted sales revenue. So, 873 = $32,873.
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Calculate the actual sales price per unit: This is done by dividing the total actual sales revenue by the actual sales units. So, 3.29/unit.
So, the actual sales price per unit in 2022 was $3.29.
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