Sales volume contribution variance
Products
ActualBudgeted
sales
RLE
(4130-3750)
ICL
(960-1320)
12000 Favourable
Difference
Std. margin
variance
Remarks
380
-360
2400*380
2500*-360
912000
-900000
Fav.
Adv.
Difference
Actual sales
Variance
Remarks
-100
-250
4130*-100
960*-250
-4130000
-240000
Adverse
Adverse
Sales price variance
Products
RLE
ICL
653000 Adverse
ActualBudgeted
price
(2900-3000)
(3400-3650)
Sales revenue comparison
Products
RLE
ICL
Actual revenue
11977000
3264000
Budgeted revenues
11250000
4818000
% changes
6.5%
-32.05%
While comparing the actual sales revenues with budgeted sales revenues it has increased by
6.5% of RLE but is reduced by 32.25% of ICL. The reduced sales revenue is due to the reduced
sales price and sales volume which made it adverse variance. The reduced price may be due to
its merged competitors. The overall sales revenues is dropped by 27% which made it
incomparable with its competitors. The competitor’s customers might have aggregated to make
them stronger.
As the company has newly introduced its ICL treatment the customers might be unfamiliar with
this treatment which made it less sales maker.
The sales mix variance is adverse at Clear co. which is due to less sales of ICL in the mix then
budgeted whose contribution per unit is higher. The sales quantity variance is favourable as it
has lowered its price which might have increased its sales volume.