If sales totaled $200,000 for the current year (10,000 units at $20 each)and planned sales totaled $212,500 (12,500 units at $17 each),the effect of the unit price factor on the change in sales is a:
A) $30,000 increase
B) $12,500 increase
C) $7,500 increase
D) $30,000 decrease

Question

Quizplus · Accepted Answer

The unit price factor is calculated by taking the difference in the selling price per unit and multiplying it by the actual units sold. The actual selling price is $20, and the planned selling price is $17, so the difference is $3. Multiply this by the actual units sold (10,000 units), resulting in a $30,000 increase.

If Sales Totaled $200,000 for the Current Year (10,000 Units