Mailings Review View E.E. AaBbDdEe AaBbCcDdEe AaBbC Normal No Spacing Heading A) Sales Price Variance = (ASP-BSP) x Actual Sales Unit Sales Price Variance = ($54 - $60) x 4,000 Sales Price Variance = $ - 24,000, it's negative So its Adverse Working 1: SCM (Standard Contribution Margin) = SP X VC SCM = 60 - 40 SCM = 20 Sales Volume Variance = (Actual Sales Unit-Budgeted Sales Unit) > SCM Sales Volume Variance = (4,000 - 5,000) x 20 Sales Volume Variance = $-20,000, it's negative So its Adverse B) Planning and Operation Variance (Value) Sales Value (Planning Variance) = (BSa-BS0) SCM Sales Value (Planning Variance) = 3,750 - 5,000 x 20 Sales Value (Planning Variance) = -25,000, it's negative So its Adverse Sales Value (Operational Variance) = (BS-AS) XSCM Sales Value (Operational Variance) = 3,750 - 4,000 x 20 Sales Value (Operational Variance) = 5,000, it's Positive So its Favorable Working 2: Revised BS = Reduction in market = 2,000,000 - 1,500,000 = 500,000 Reduction% x 100% = 25% The BS has to be reduced to = 100% - 25% = 75% So, BRK) = 5,000 x 75% = 3,750 500,000 2,000,000 Q) As per your calculations suggest on the sales performance of the business. (6 marks) (8 marks)