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Unfavorable sales volume variance vs favorable price varianc

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Minnie, the manager of the marketing department for one of the industry's leading retail businesses, has been notified by the accounting department that her department experienced an unfavorable sales volume variance in the preceding period but a favorable sales price variance. Based on these contradictory results, how would you interpret her overall performance as suggested by her variances?

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Solution Summary

The overall results are interpreted of an unfavorable sales volume variance and a favorable sales price variance. Contradictory results are examined.

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The unfavorable sales volume variance means the actual sales were less than the budgeted sales. The favorable sales price variance means the products were sold at ...

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