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) $37,500 decrease

Question

Quizplus · Accepted Answer

The unit price factor is calculated by taking the difference in unit prices and multiplying by the actual units sold: ($20 - $17) * 10,000 units = $30,000 increase.

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